There are differing perspectives on why international hotel companies engage in Merger and Acquisition (M&A) activities. Some hotel executives believe that M&A helps companies grow faster by filling gaps in specific market segments, introducing new products within a shorter timeframe, expanding market share, and entering markets that organic growth alone would not allow. Meanwhile, hotel owners argue that beyond these reasons, hotel companies may also pursue M&A due to financial pressures, to eliminate competition, or as a strategic move to build a larger portfolio for future resale.
In reality, the true motives behind each M&A deal may never be fully known, but it is certain that these transactions impact the internal operations of international hotel companies as well as hotel owners and other stakeholders.
The attached white paper explores how M&A activities of international hotel companies impact the value created for hotel owners. Please contact Rubix Navigation if you need further information.