PwC‘s Hospitality & Leisure: US Deals 2026 Outlook reported that deal volume was 40 percent higher in the third quarter of 2025 than it was in Q1 and Q2, suggesting that optimism and activity returned to the market heading into 2026. The end of the year demonstrated a renewed focus on evolving consumer expectations in the U.S. hospitality and leisure (H&L) sector.
Buyers have been more selective, and premium experiences continue to drive demand. Though year-to-date deal volumes are comparable to 2024, the value of deals has declined. Average transaction size is down about 55 percent, but strategic transactions marked an increase in value of about seven percent year over year.
According to the report, the following trends defined dealmaking in late 2025:
- Corporate buyers sharpened focus on ecosystem fit. With less competition from private equity, corporate acquirers concentrated on properties that expand loyalty ecosystems, enhance personalization capabilities, or deepen cross-channel customer engagement.
- Luxury and digital segments led activity. M&A interest skewed toward premium resorts and digital gaming assets, as investors pursued differentiated demand drivers and high-margin experiences.
- Gaming attracted strategic interest. The largest H&L deals in the second half of 2025 involved digital platforms—underscoring the sector’s convergence with entertainment and international capital flows.
- Cross-border activity remained steady. Deal volume from international buyers held flat year over year, despite geopolitical and macroeconomic uncertainty.
- Infrastructure and integration gained focus. Investments targeted both guest-facing innovation and back-of-house systems, including loyalty integration, event logistics, and AI-driven personalization engines.
- Customer data emerged as a value lever. Buyers placed increasing emphasis on unified customer identity, loyalty ecosystems, and personalized engagement as part of their dealmaking.
Looking Ahead
The report outlines how, in 2026, companies will likely look to scale AI-driven platforms and create connected ecosystems. Other key developments to watch include:
- AI shifts from tool to teammate. Agentic AI use cases are accelerating across H&L. In travel, AI assistants are rebooking itineraries in real time. In hospitality, predictive analytics and digital concierges are enhancing service and efficiency. In gaming, adaptive platforms are redefining personalization. Rather than replacing workers, the most valuable use cases empower staN to deliver better, more human experiences.
- The brand becomes a competitive moat. In a world blending digital and physical experiences, trusted brands offer more than familiarity—they offer strategic insulation. Investors are seeking assets where loyalty, recognition, and content ecosystems drive monetization and margin.
- Data quality is the new constraint. As AI deployment scales, data governance is separating leaders from laggards. M&A strategies increasingly hinge on the ability to unify, activate, and protect customer data across platforms and regions.
- Experience platforms are the new perimeter. Buyers are investing in full-stack platforms that combine content, loyalty, booking, and analytics. The goal: create seamless, end-to-end guest journeys that blur traditional sector lines.
- Loyalty becomes an asset class. Engagement is now a quantifiable enterprise value. Dealmakers are assigning real valuation to loyalty ecosystems and their ability to drive cross-brand conversion, retention, and upsell.
- Discipline defines value creation. With capital costs still elevated, deal success will depend on post-close clarity. Day One integration plans should prioritize data readiness, customer identity unification, and loyalty platform integration to accelerate value capture.
“Hospitality and leisure are no longer defined by venues or categories, but by the seamless delivery of interconnected experiences to value-focused consumers,” said US Hospitality & Leisure Deals Leader Jonathan Shing.
