2024 was a “quiet” year for corporate mergers and acquisitions activity in the travel, leisure and hospitality industry, according to a KPMG report released earlier this month.
Deal volumes in the sector fell to their lowest levels since 2020, KPMG found, with 875 total deals worth $28.2 billion in 2024, a 20% decrease from 2023.
But while deal activity in the travel, leisure and hospitality sectors was low overall, hotel companies continued to cross-pollinate through strategic partnerships and loyalty tie-ins, particularly in booming Las Vegas.
“Partnerships offer a less risky alternative to M&A by enabling companies to collaborate and leverage each other's strengths without the need for full integration,” Daniel Fischer, a KPMG partner and deal advisory and strategy lead for travel, leisure and hospitality, told Hotel Dive.
Meanwhile, if late 2024’s improving economic conditions continue, they could fuel a rebound in travel, leisure and hospitality M&A in 2025, the report found.
A quiet year
In 2024, the high cost of capital made it difficult for companies to plan and execute mergers, according to KPMG.
Hospitality and leisure, specifically, saw 820 deals, an increase of 5% year over year. But the combined value of those deals, $27.6 billion, was down 5.7%.
At the end of the year, however, economic conditions were improving, with inflation ebbing and interest rates lowered by the Federal Reserve.
A top deal was Standard General LP’s $4.3 billion acquisition of Bally’s Corporation, announced in July. Bally’s is currently developing a 30-acre casino resort in Chicago.
According to Fischer, M&A in the hospitality industry “has been shaped by the need to restructure following the pandemic, integrate new technologies, consolidate market presence, and adapt to changing consumer preferences.”
"Partnerships foster synergies, shared resources and allow exploration of new markets.”

Daniel Fischer
partner and deal advisory lead for travel, leisure and hospitality at KPMG
Through M&A, hospitality companies are focusing on “digital transformation, operational efficiencies, geographic diversification, sustainable practices, and competitive positioning,” he added.
Looking forward, KPMG’s report notes that companies in travel, leisure and hospitality are “cautiously optimistic about what lies ahead.” A “pro-business” administration in Washington could lower taxes and regulatory burdens, and companies could also benefit from a normalizing labor market, per the report.
“A reduction in market uncertainty and increased investor confidence would also encourage more robust deal-making,” Fischer said.
The power of partnerships
In the meantime, partnerships are proving to be a useful way for hospitality companies to build scale and market presence — particularly in Las Vegas, according to KPMG.
MGM Collection by Marriott Bonvoy, a loyalty tie-in between Marriott International and MGM Resorts International, began taking bookings last March. Through the partnership, Marriott Bonvoy members could earn and redeem points at more than a dozen new locations in Las Vegas, while MGM Rewards members could unlock elite status with one of the world’s largest hotel loyalty programs, KPMG noted.
The partnership allowed Marriott to not only grow the number of rooms in its system, but also take advantage of Las Vegas’ business-friendly environment and associate itself with some of the city’s most iconic brands, KPMG found.
According to KPMG, the tie-in “brings a renewed focus on what strategic partnerships can bring to both companies,” including shared resources and expertise.
Partnerships, Fischer added, “provide innovative ways to enhance the customer experience and progress strategic objectives when market inventory is low, companies are testing new offerings, or the cost of capital is high. Partnerships foster synergies, shared resources, and allow exploration of new markets, among other things.”
MGM Rewards expanded its Marriott Bonvoy perks last week as the partnership continued to exceed both companies’ expectations. Hyatt Hotels also announced a Las Vegas loyalty partnership with The Venetian Resort in December.