Mergers and acquisitions slow in UK hotel sector
UK mergers and acquisitions activity in the leisure sector was subdued in the first half of 2008, according to a study by PKF.
The report by the accountants and business advisers found deal volume and value were both down compared to the first half of 2007.
The PKF report, Deal Drivers UK, produced in conjuction with mergermarket, found that M&A activity in the sector was 90% down in value terms and 25% in volume terms, even though growth was seen in the wider leisure sector and room rate and occupancy figures remain steady for hoteliers across the UK.
The larger share of transactions occurred in the first quarter – 23 transactions worth £806m – while in the second quarter there were 17 transactions worth £179m.
The budget end of the spectrum was fairly active and represented 50% of all the hotel sector transactions announced in the first half of the year.
The largest of these was the acquisition of Pontin’s Limited, the UK operator of holiday camps and centres, for £46m by a private investor-led consortium.
Robert Barnard, partner for hotel consultancy services at PKF, said, “Although M&A activity in the hotel and leisure sector was subdued, the sector as a whole has had a steady start to the year. Indeed, hoteliers across the country are holding their own and still maintaining healthy occupancy and room rate figures.
“Looking forward there are M&A prospects in the sector for the rest of the year with murmurings that the UK gaming group, 888, is the target of both its UK competitors, Ladbrokes and Partygaming.â€
PKF commissioned mergermarket to explore the health of UK M&A across five key industry sectors – hotels & leisure, business services, food, real estate and manufacturing.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025