➤ Key Highlights
In the third quarter of 2025, hospitality and leisure M&A deal volume was roughly 45% higher than both Q1 and Q2 averages, according to a PwC report published Tuesday.
During the third quarter, private equity investors remained cautious, but corporate acquirers focused on properties that could “expand loyalty ecosystems, enhance personalization capabilities, or deepen cross-channel customer engagement,” per the report.
Deal volume from international buyers remained steady year over year, and M&A interest skewed toward luxury investments during the quarter.
Looking ahead to 2026, traditional M&A will continue to drive deal volume across the hospitality industry, but the biggest opportunities will be centered on “creating connected ecosystems and scaling AI-driven platforms,” according to PwC.
Hospitality dealmakers will shift interest toward assets where loyalty, recognition and content ecosystems drive monetization and margin, per the report.
Dealmakers will invest in full-stack platforms that combine content, loyalty, booking and analytics, as agentic AI use cases accelerate industrywide, per PwC.
Hospitality M&A had stalled in the first half of the year amid volatile capital markets, trade policy shifts and dampened consumer sentiment, PwC previously reported.
Hospitality and leisure M&A deal volume increased by approximately 45% in Q3 2025 compared to the first two quarters of the year, according to PwC. Corporate acquirers showed particular interest in properties supporting loyalty, personalization, and cross-channel engagement, while private equity remained cautious
This event illustrates how evolving demand signals are prompting institutions to rethink engagement frameworks in the hospitality sector. The emphasis on integrated ecosystems and experience-led strategies reflects a move toward creating seamless, interconnected offerings that align with new consumer expectations. Institutions are prioritizing platforms and assets that enable them to deliver comprehensive, personalized experiences across multiple channels. The push toward experience integration suggests a fundamental shift in how value is defined and delivered within hospitality.
⚠️ Why it matters now
For CRE360’s audience, understanding this shift is critical as it impacts how capital is allocated, how partnerships are structured, and what types of assets attract investment. The focus on experience-led, interconnected strategies means that developers, operators, and underwriters must consider new demand drivers when evaluating opportunities. Policy makers and construction partners may also need to adapt frameworks to support the creation of environments that facilitate integrated, loyalty-driven experiences.
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➤ TAKEAWAY
Further integration of technology and experience frameworks could follow as institutions align their strategies with changing demand patterns. Deal activity may continue to favor assets and platforms that support interconnected, personalized experiences. Stakeholders might monitor ongoing developments in AI-driven platforms and loyalty ecosystems as these become increasingly central to institutional engagement in hospitality.
