PwC finds decrease in mergers and acquisitions in hospitality industry in Canada

Despite some major acquisition announcements within the hospitality industry this year, PwC’s report reveals a significant decrease in mergers and acquisitions compared to the previous year. According to the Hospitality and Leisure midyear report by PwC, using data from S&P Global Market Intelligence, the total value of industry deals in 2025 up to May 15 was less than $4 billion USD, which is less than half of the value recorded during the first two quarters of 2024. The report attributes this slowdown to factors such as policy uncertainties and challenges in cross-border activities due to tariffs and the threat of tariffs.

Of particular interest to individuals in the travel and leisure sector is the report’s mention of a “shifting sentiment around global travel,” suggesting that this trend might be prompting companies to focus on strengthening their portfolios within the U.S. market. PwC points out that the luxury category is where most deals are taking place. Operators are strategically investing in experience-driven growth by utilizing mergers and acquisitions to enter luxury, lifestyle, and bespoke travel segments that cater to high-income consumers. This is especially significant as the affluent consumer segment continues to drive broader consumer consumption growth in the United States.

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Furthermore, the report highlights the trend of operators shifting their focus towards luxury and experience-driven offerings within the U.S. market. PwC underscores that operators are increasingly concentrating on growth in the luxury sector, targeting high-income consumers by providing tailored travel experiences. This strategic emphasis on luxury and experiential travel is in line with the growing demand for unique and personalized travel experiences among high-end consumers.

In addition to the economic factors influencing the decline in mergers and acquisitions, the report also suggests that shifting consumer preferences and market dynamics are playing a significant role. As consumers increasingly prioritize travel experiences that offer exclusivity, personalized service, and unique offerings, companies are adapting their strategies to cater to these evolving demands. By focusing on luxury and lifestyle segments, operators are positioning themselves to capitalize on the growing demand for upscale and bespoke travel experiences.

As the hospitality industry continues to evolve in response to changing consumer preferences and market dynamics, operators are navigating a challenging landscape marked by policy uncertainties and economic fluctuations. By strategically investing in luxury and experience-driven growth, operators are positioning themselves to capitalize on the evolving demands of high-income consumers. This shift towards luxury and lifestyle segments reflects a broader trend within the industry towards personalized, exclusive travel experiences that cater to the unique preferences of discerning travelers.