Many smaller hotel companies will have no choice but to combine with their larger counterparts in order to survive post-COVID-19, creating a more consolidated industry in the process, says GlobalData, a leading data and analytics company.
Ralph Hollister, Travel & Tourism Analyst at GlobalData , offers his view:
“The number of announced mergers and acquisitions (M&A) deals globally decreased from 2,349 in February 2020 to 1,984 in March 2020, while deal value decreased from US$151.2bn to US$129.9bn. This global trend is replicated in the tourism sector and more specifically in the hotel industry. However, M&A activity is likely to increase as smaller providers are backed into a corner.