After a slow start, hospitality and leisure dealmaking is rebounding. Deal volume rose 45% in Q3 as capital markets stabilized and travel demand normalized. While M&A remains core, the biggest bets are shifting to AI-enabled platforms, experiential ecosystems, and loyalty-led growth. The sector is entering a new phase focused less on physical assets and more on data-driven, connected experiences.
PwC18 December 2025
PwC released its US Deals 2026 outlook for hospitality and leisure clearly putting connected experiences and AI as central drivers of dealmaking in the sector.
After a muted start to the year, momentum is returning to hospitality and leisure (H&L) dealmaking. Deal volume rose 45% in the third quarter, signaling renewed confidence among investors and operators as capital markets stabilize and travel demand normalizes. While traditional mergers and acquisitions remain the backbone of sector activity, the most transformative bets are shifting toward AI-enabled platforms, experiential ecosystems, and loyalty-driven growth models.
As the industry heads into 2026, hospitality and leisure are entering a new competitive chapter—one defined less by physical assets and more by connected experiences powered by data, brand trust, and intelligent technology.
“Hospitality and leisure are no longer defined by venues or categories, but by the seamless delivery of interconnected experiences to value-focused consumers,” said Jonathan Shing, U.S. Hospitality & Leisure Deals Leader.
Key Takeaways
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Deal volume rebounded 45% in Q3, reflecting rising optimism in hospitality and leisure.
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AI is shifting from tool to teammate, enhancing—not replacing—human service delivery.
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Brand equity is a competitive moat, supporting loyalty, margins, and ecosystem expansion.
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Data governance is the biggest constraint on scaling AI and personalization.
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Experience platforms are the new growth strategy, unifying content, booking, loyalty, and analytics.
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Loyalty now drives valuation, not just marketing performance.
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Disciplined integration is essential to unlock post-deal value in a higher-cost capital environment.
AI Moves From Experiment to Enterprise Scale
Artificial intelligence is rapidly evolving from a back-office efficiency tool into a frontline driver of guest experience. Across hospitality and leisure, agentic AI—systems that can act autonomously within defined parameters—is gaining traction.
In travel, AI assistants are already rebooking itineraries in real time during disruptions. In hospitality, predictive analytics and digital concierges are improving staffing efficiency, personalizing guest interactions, and anticipating service needs. In gaming and entertainment, adaptive platforms are reshaping personalization and engagement at scale.
Critically, the most successful implementations are not replacing human workers. Instead, AI is increasingly acting as a “teammate,” enabling staff to deliver more intuitive, responsive, and human-centered experiences.
Brand Strength Emerges as a Competitive Moat
As digital and physical experiences continue to converge, brand equity is becoming a form of strategic insulation. Investors are prioritizing assets with strong loyalty, cultural relevance, and recognizable identities—qualities that support pricing power, engagement, and long-term monetization.
In an environment where consumers interact with brands across apps, venues, content, and communities, trusted brands serve as anchors. These brands are better positioned to build ecosystems that extend beyond single transactions into ongoing relationships.
Data Quality Becomes the Defining Constraint
While AI adoption is accelerating, data governance has emerged as the primary bottleneck. The ability to unify, protect, and activate customer data across platforms, regions, and regulatory environments is now a critical differentiator.
As a result, M&A strategies are increasingly shaped by data readiness. Buyers are scrutinizing whether targets can support advanced analytics, personalization, and AI deployment—or whether fragmented systems and weak governance will limit upside.
Experience Platforms Redefine the Deal Perimeter
The most active buyers are no longer thinking in silos. Instead, they are investing in full-stack experience platformsthat integrate content, booking, loyalty, and analytics into a single ecosystem.
These platforms are designed to deliver seamless, end-to-end guest journeys that blur traditional lines between travel, hospitality, entertainment, and leisure. The goal is not just convenience, but continuous engagement across touchpoints.
Loyalty Evolves Into a Valuation Driver
Once considered a marketing add-on, loyalty is now an asset class. Engagement, retention, and cross-brand conversion are increasingly quantifiable and directly tied to enterprise value.
Dealmakers are placing tangible valuation premiums on loyalty ecosystems that can drive upsell, increase lifetime value, and enable personalization at scale. In many transactions, loyalty data and member bases are becoming just as important as physical assets.
Discipline Defines Post-Deal Value Creation
With capital costs still elevated, execution matters more than ever. Successful transactions will hinge on clear post-close integration strategies, starting on Day One.
Priority areas include:
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Data readiness and governance
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Customer identity unification
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Loyalty platform integration
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Accelerated AI deployment tied to real use cases
Deals that lack early operational clarity risk falling short of value expectations, even in a strengthening market.
Global Loyalty Organisation Take:
Improving capital market conditions and resilient sector fundamentals are setting the stage for a new wave of hospitality and leisure dealmaking. As travel demand stabilizes and AI adoption accelerates, investors are targeting experience-led platforms that combine technology, brand trust, and loyalty at scale.
Looking ahead, the most successful deals will be those that acquire not just properties, but capabilities—enabling AI-powered personalization, deeper customer relationships, and interconnected ecosystems that deliver lasting competitive advantage.
Source: PwC
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