The value of mergers and acquisitions in the global travel industry was the highest since 2007 and over twice as much as in each of the previous six years, according to data analyzed by Bloomberg.
The takeovers and mergers of hotel companies, tour operators and OTAs totaled US$64.4 billion, fueled by lower borrowing costs and an increasing competitive marketplace.
Last year 596 transactions were completed with Anbang Insurance Group Co.’s purchase of the Waldorf Astoria hotel for $1.95 billion and the $8.4 billion merger of TUI AG and TUI Travel Plc among the standout deals.
Last year was the busiest in both the number of deals and market value since 2007, the year Blackstone acquired Hilton Worldwide Holdings Inc. for $26 billion.
The spending spree will likely continue in 2015, the report says.
Last week French regulators approved the takeover bid by Fosun International for Club Med and Expedia Inc. has acquired online travel agency Travelocity from Sabre Corp in a cash deal worth $280 million.
Online travel agency Orbitz Worldwide Inc is actively seeking a buyer while Swiss travel group Kuoni recently said it is planning to sell off its tour operating business.
