SPECIAL REPORT
M & A IN 2022 :
HOW MUCH ACTIVITY HINGES ON COVID ?
Merger and acquisition activity in the hotel world rebounded in 2021 as the outlook for returning demand started to become more clear and net operating income started to accelerate . If the rebound in business holds and grows in 2022 , with so much at-the-ready cash still on the sidelines and continued distress among asset types , the expectation is for even more buoyant M & A activity .
Generally speaking , the general sentiment is that 2022 will be a strong transaction year , accelerating in the first half of 2022 , says Geraldine Guichardo , global head of research for hotels at JLL . She said global hotel transaction volume surpassed expectations through the first three quarters of 2021 , with
US $ 41.4 billion in total sales – up 86 % year-over-year and down only 20 % to the same period in 2019 .
“ Hold onto your hat . The ‘ Diamond Age ’ of travel is going to create a surge in travel demand and robust KPIs for hotel assets , creating elevated valuations and transaction activity ,” says Guy Langford , partner , M & A , at Deloitte .
Avington Group , London , stated it
50 hotelsmag . com January / February 2022