The US tourism & leisure industry saw a 18.9 percent drop in deal activity over the course of February 2020, when compared with the last 12-month average, according to GlobalData’s deals database.
A total of 30 deals worth $458.86 million were unveiled in February 2020, compared to the 12-month average of 37 deals. M&A, the leading category, had 19 deals, which accounted for 63.3 percent of all February 2020 deals.
Venture financing took second place with seven deals, followed by private equity with four transactions, respectively accounting for 23.3 percent and 13.3 percent of the month's overall tourism & leisure industry deal activity.
Private equity led in value with total deals worth $238m, while M&A and venture financing deals totalled $181.7m and $39.16m, respectively.
US tourism & leisure industry deals in February 2020: Top deals
The top five tourism & leisure industry deals comprised 64.9 percent of the overall value during February 2020. Their combined value stood at $297.7m, against the overall value of $458.86m recorded for the month.
The top five tourism & leisure industry deals of February 2020 tracked by GlobalData were:
- Cedar Capital Partners, King Street Real Estate GP and Westdale Properties’ $120m private equity deal with Shelborne South Beach Hotel
- The $118m private equity deal with Marriott International by Dimah Capital Investment and Stonebridge Companies
- 2 Chainz and Larry Fitzgerald’s $30m venture financing deal with Turo
- The $16.2m asset transaction by MCR Development
- 808 Indiana’s asset transaction with Louisville Hotel Associates for $13.5m.
The drop is not unexpected, given the U.S. tourism & leisure industry has been severely compromised by COVID-19. As a result, hotels and resort are closing their doors, cruse ships are suspending operations and airlines are cutting capacity.