North American tourism industry: 52% drop 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.
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 were:
• Apollo Global Management and Silver Lake Partners’ $1.2bn private equity deal with Expedia Group
• The $1bn private equity deal with Airbnb by Silver Lake Management and TPG Sixth Street Partners
• 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
• 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.
• Twin River Worldwide Holdings’ asset transaction with Eldorado Resorts for $155m.