Skift Take
The value of announced acquisitions this year is currently 3 times that for the deals in all of 2020. We gathered the leading hotel acquisitions for 2021 for you by dollar amount, some offers strategic, some less so. The pace is vigorous but the effect from the Delta version could effectively reverse the momentum heading into fall.
Rashaad Jorden
Hyatt’s $2.7 billion purchase today of the Apple Leisure Corporation plainly underscores the returning confidence of investors in the hospitality sector. The healing of hotels and return of earnings by their owners spells something to financiers: some go back to certainty. In fact, the worth of deals in hotels up until now this year is 3 times higher than the worth of those for all of 2020.
Naturally, in 2015 was the nadir for the industry due to the fact that of the pandemic, and nobody really expected a return to the blockbuster deals of simply a couple of years ago even in a complete healing, however the momentum is picking up on buyouts.
The Hyatt-Apple deal represents one of eight merger-and-acquisition offers worth more than $1 billion announced this year with the size and scope of the offers not what the market anticipated. Certainly, the in spite of the size of Hyatt’s acquisition, industry experts believe that the age of huge mega-mergers remain in the past as major hotel companies are concentrating on conversions, deals in which hotel owners are taking on a brand conversion.
So how are hotel merger deals for 2021 shaping up? Apple’s purchase of Hyatt– the 4th biggest in terms of total deal value, excluding deals involving special purchase acquisition business– was one of 308 such deals worth $43.4 billion that have happened this year. The largest deals announced in 2021 appear in the table below, based on Skift Research study and S&P Capital IQ data.
Largest Hotel Merger and Acquisition Deals 2021
| Revealed Date | Overall Deal Value ($USDmm) | Target | Buyer |
|---|---|---|---|
| Mar-21 | $6,340 | Extended Stay America, Inc. | . Blackstone Inc.(NYSE: BX ); Starwood Capital Operations, LLC |
| Feb-21 | $4,535 | FAST Acquisition Corp. (NYSE: FST) | Fertitta Entertainment, Inc. |
| . Mar-21 $3,393 | Diamond Resorts International, Inc. | . Hilton Grand Vacations Inc. (NYSE: HGV) | |
| Aug-21 | $2,769 | Apple Leisure Group | Hyatt Hotels Corporation (NYSE: H) |
| Mar-21 | $2,250 | Operating Properties of Las Vegas Business of Las Vegas Sands Corp. | . Apollo Global Management, Inc. (NYSE: APO) |
| Apr-21 | $2,164 | Gores Metropoulos II, Inc. (NasdaqCM: GMII) | Sonder Holdings Inc. |
| . Jun-21 $1,306 | Abu Dhabi National Hotels Business PJSC (ADX: ADNH) | Abu Dhabi National Exhibitions Company PJSC | |
| Jun-21 | $1,072 | Thayer Ventures Acquisition Corporation (NasdaqCM: TVAC) | Inspirato LLC |
| May-21 | $818 | Riu Hotels S.A. | Saranja S.L. |
| Jun-21 | $681 | Cheval Blanc Randheli/ Etihad International Hospitality | Alpha Dhabi Holding PJSC (ADX: ALPHADHABI) |
| May-21 | $650 | RRR Palms LLC | San Manuel Video Gaming and Hospitality Authority |
| May-21 | $622 | 4 Seasons Resort Orlando at Walt Disney World ® Resort | Host Hotels & Resorts, Inc. (NasdaqGS: HST) |
| Jul-21 | $523 | Selenta Hospitality Group, S.L. | Brookfield Possession Management Inc. (TSX: BAM.A) |
| Jan-21 | $485 | Welk Hospitality Group, Inc. | . Marriott Vacations Worldwide Corporation (NYSE: VAC) |
| Mar-21 | $479 | Properties of EHT US1, Inc | Madison Phoenix LLC |
| Jun-21 | $432 | Margaritaville Hollywood Beach Resort Property | Pebblebrook Hotel Trust (NYSE: PEB) |
Source: CapitalIQ, Skift Research. Information since August 16, 2021.
The pickup in M&A is a true indication that hotel brand name owners are seeing opportunities to transform others to their flags. Whether the Delta alternative puts a screeching stop to this self-confidence will become more clear much deeper into the third quarter.
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