The Impacts of Mergers and Acquisitions(M&A) on the Hotel Industry

Abstract

In order to survive and grow, business organizations often utilize mergers and acquisitions strategically. The hotel industry’s academic community has been unable to find clear evidence of the impacts of M&As. The purpose of this study is to discover plausible evidence about the impacts of M&A in the lodging market, within a context limited to four case studies. The acquiring companies investigated in this study achieved some degree of positive synergy as a result of their acquisitions. However, maintaining an ongoing improvement in long-term value to shareholders through acquisitions was doubtful. Three out of four of the hotel firms studied experienced serious problems in maintaining earnings gained from the mergers.