North America’s tourism & leisure industry sees a drop of 52% in deal activity in Q2 2020

27th July 2020 (Last Updated July 27th, 2020 12:47)

North America’s tourism & leisure industry sees a drop of 52% in deal activity in Q2 2020

North America’s tourism & leisure industry saw a drop of 52% in overall deal activity during Q2 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 60 deals worth $3.3bn were announced for the region during Q2 2020, against the last four-quarter average of 125 deals.

Of all the deal types, M&A saw most activity in Q2 2020 with 36, representing a 60% share for the region.

In second place was venture financing with 20 deals, followed by private equity deals with four transactions, respectively capturing a 33.3% and 6.7% share of the overall deal activity for the quarter.

In terms of value of deals, private equity was the leading category in North America’s tourism & leisure industry with $2.25bn, while venture financing and M&A deals totalled $666.95m and $387.67m, respectively.

North America tourism & leisure industry deals in Q2 2020: Top deals

The top five tourism & leisure deals accounted for 88.7% of the overall value during Q2 2020.

The combined value of the top five tourism & leisure deals stood at $2.93bn, against the overall value of $3.3bn recorded for the quarter.

The top five tourism & leisure industry deals of Q2 2020 tracked by GlobalData were:

1) Apollo Global Management and Silver Lake Partners’ $1.2bn private equity deal with Expedia Group

2) The $1bn private equity deal with Airbnb by Silver Lake Management and TPG Sixth Street Partners

3) Broadscale Group, Ervington Investments- Cyprus, Exor International, 83North Venture Capital, Hearst Ventures, Macquarie Capital (Europe), Mori Trust, Pitango Growth, Planven Investments, RiverPark Ventures and Shell Ventures’ $400m venture financing of Via Transportation

4) The $170m venture financing of sonder by Atreides Management, Fidelity Investments, Greenoaks Capital Management, Greylock Partners, iNovia Capital, Lennar, Spark Capital, Tao Capital Partners, Valor Equity Management and Westcap Mgt.

5) Twin River Worldwide Holdings’ asset transaction with Eldorado Resorts for $155m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.