US Hospitality M&A Value Jumps 106% in H1 2026, KPMG Reveals

M&A Value Surges Amid Fewer Deals

The United States' travel, leisure, and hospitality sector registered a significant increase in merger and acquisition (M&A) deal value during the first half of 2026, KPMG reported. Activity in the sector reached $39.6 billion, marking a 106.8% rise compared to the same period last year.

This substantial growth in value contrasts with a reduction in the number of transactions, as deal volume decreased by 7.6% year-on-year, totalling 402 deals. KPMG indicated that this disconnect between rising deal value and falling volume shows a clear strategic shift among buyers.

They are now pursuing "bigger, higher-conviction" transactions, focusing on assets that offer critical advantages. These include direct customer ownership, established loyalty programmes, control over distribution channels, strong pricing power, and scalable operating models. This trend suggests a move towards consolidating market share and securing long-term operational efficiencies.

Key Transactions and Buyer Priorities

The largest transaction in the first half of 2026 was Fertitta Entertainment's $17.6 billion acquisition of Las Vegas resort operator Caesars Entertainment.

This significant hospitality and leisure deal, as detailed by KPMG, brought together a broad array of assets, including physical properties, extensive loyalty programme reach, hospitality operations, gaming economics, and valuable customer data, integrating them onto a single platform.

Beyond this major acquisition, other notable hospitality and leisure deals included KSL Capital Partners' $3 billion purchase of Invited Clubs. Apollo Global Management also completed an acquisition of Emerald Holding and Questex, valued at approximately $1.5 billion.

KPMG's analysis found that buyers across lodging, resorts, restaurants, gaming, cruise lines, attractions, fitness centres, and experiential assets were specifically seeking deals that provided pricing power, encouraged repeat engagement, demonstrated strong brand recognition, maintained labour discipline, offered renovation upside, and possessed significant loyalty programme reach, alongside potential for operational improvement.

Outlook and Execution Risks for H2 2026

Looking ahead to the second half of 2026, KPMG forecasts that hospitality and leisure dealmakers will concentrate on premium lodging, scaled gaming operations, established restaurant platforms, branded services, destination assets, and membership-led experiential platforms. The firm expects these transactions to be driven by a clear operating thesis.

Quality, in this context, will be measured by factors such as rate integrity, consistent repeat customer behaviour, capital expenditure discipline, brand strength, margin control, and the ability to convert customer data into tangible operating outcomes. However, the report also highlights several execution risks.

A primary concern is the potential for buyers to mistake temporary demand strength for a structural, long-term trend. Furthermore, underfunding crucial post-acquisition initiatives in renovation, technology, and workforce development could present additional hazards.

Daniel Fischer, principal and U.S. travel, leisure and hospitality advisory lead at KPMG, stated that buyers are scrutinising the mechanics of post-close execution, emphasising that the true value of large deals will be determined by a company's ability to transform the business, not merely on the signing day.

Implications for Industry Stakeholders

The sustained focus on larger, higher-quality assets means that consolidation within the US travel, leisure, and hospitality sectors is set to continue, particularly among premium and branded operations.

For industry stakeholders, this trend shows a clear mandate for businesses to demonstrate robust fundamentals: proven customer loyalty, efficient operations, and a clear path to generating value from data.

Operators and investors should prepare for continued scrutiny on post-acquisition integration and the long-term viability of demand trends, rather than short-term market fluctuations. The emphasis on capital expenditure discipline and brand strength suggests that companies investing in asset improvement and brand equity will maintain a competitive edge.

A separate report from PwC in June 2026 also corroborated these findings, noting that U.S. hospitality and leisure M&A deal volume was down in the first half of 2026, with investors targeting a "narrower set of assets" focused on premium, wellness-anchored, and data-rich properties.

This alignment from multiple analyses reinforces the strategic shift towards quality and operational resilience in the sector.