Core Insights - The hospitality industry is experiencing a shift towards acquiring properties and capabilities that integrate artificial intelligence, loyalty, and experiential design to enhance customer relationships [3][5] - The definition of hospitality and leisure is evolving to focus on interconnected experiences rather than just venues or categories, as emphasized by industry leaders [4] - Improving capital market conditions and strong sector fundamentals are expected to drive renewed M&A activity in the hospitality and leisure sectors [6][7] M&A Activity - Hospitality M&A deal volume in Q3 2025 was approximately 45% higher than the averages of Q1 and Q2, indicating increased optimism and activity in the sector [8] - Corporate acquirers are focusing on properties that can expand loyalty ecosystems, enhance personalization, and deepen customer engagement, while private equity investors remain cautious [8] - The M&A interest is skewed towards luxury investments, and the biggest opportunities in 2026 will revolve around creating connected ecosystems and scaling AI-driven platforms [8]