A Hospitality Lawyer's Guide to M&A Deals
Corporate M&A activity has increased dramatically in recent years. In the first nine months of 2018 alone, approximately $3.3 trillion in mergers and acquisitions were announced globally.
In keeping with this overall trend, hospitality has seen a similar surge in mega-deals and consolidations, including Marriott International's $13.3 billion acquisition of Starwood Hotels & Resorts in 2016; the $1.95 billion acquisition of La Quinta Holdings by Wyndham Hotels & Resorts earlier this year; AccorHotels' $319 million acquisition of a 50% stake in sbe Entertainment Group in October 2018; and the recent acquisition of Two Roads Hospitality by Hyatt Hotels for $405 million (with potential additional consideration of $96 million).
To be sure, economic factors - including changes to the federal tax code and rising profits stemming from a robust, post-recession economy - play a role in the increase in M&A activity. But, to an even greater extent, hospitality has been shaped by industry-specific influences that are driving companies to acquire and consolidate with others.
In their recent article for Hotel Executive, Todd Soloway, head of Pryor Cashman’s Hotel + Hospitality Group, and Michelle Pham explore common issues that arise during M&A transactions involving hospitality companies and offer guidance on how parties on both sides of a deal should address the risks and liabilities.
Click here to read the full article.
More About Pryor Cashman’s Hotel + Hospitality Group
Pryor Cashman’s Hotel + Hospitality Group provides meticulous personal attention with the added strength and support of a full-service firm. We are advisors who help clients define key business goals, develop strategies to optimize value and assemble teams to get deals done. Representing owners, operators, private equity firms, lenders and family offices in the U.S. and abroad, our seasoned hospitality litigators are on the cutting edge of the industry’s most impactful issues.
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