SPECIAL REPORT
M & A BULLS
CHARGING IN THE U . S .
Las Vegas was a hotbed for transactions in 2021 . Among the major deals : MGM Resorts International agreed to acquire Infinity World Development Corp ’ s 50 % interest in CityCenter Holdings , which is comprised of Aria Resort & Casino and Vdara Hotel and Spa , for US $ 2.125 billion . MGM subsequently made a deal with Blackstone to monetize the Aria and Vdara real estate assets , selling Aria and Vdara real estate for US $ 3.89 billion in cash .
AS LONG AS THE RECOVERY CONTINUES THROUGH 2022 , THE EXPECTATION FOR M & A ACTIVITY REMAINS VERY POSITIVE AS SO MUCH DRY POWDER LOOKS FOR A HOME .
by JEFF WEINSTEIN , EDITOR IN CHIEF
If operating fundamentals continue to improve , the deal making pace is expected to pick up in the United States in 2022 , with buyers and sellers coming closer together on pricing expectations . Resorts and drive-to destinations will likely remain in favor as long as the pandemic persists , and single assets and smaller portfolio deals are expected to remain in vogue as they can still get financed and closed without too much pain .
HOTELS spoke to a number of experts in the brokerage and consultancy space to get their take on the climate ahead .
WHAT ARE YOUR EXPECTATIONS FOR DEAL-MAKING IN 2022 ?
Evan Hurd , Stephen O ’ Connor , RobertDouglas : Initially , sensing the flush of new capital ( tourist capital ) anxious to invest in hospitality , many owners of properties that essentially did well even during the darkest days of the pandemic were and are trying to take advantage of a seller ’ s market . If no one bites , they are still in a relatively comfortable position . They will just keep operating the hotel . However , post-ALIS , as we progress through 2022 , we expect many more properties to come to market , for a variety of reasons , with more realistic expectations . This should narrow the bid-ask spread and get transactions flowing …
As we know , even in a compact region like the Northeast in the U . S ., we are seeing that dichotomy
56 hotelsmag . com January / February 2022