Increasing US deal volume has PwC optimistic

PwC said investors are focusing on experience-led platforms that deliver both value and differentiation. Future dealmaking is expected to center on acquiring properties and capabilities that support an evolved ecosystem strategy where AI, loyalty, and experiential design converge to nurture growth, deepen customer relationships, and unlock lasting advantage.

Looking closer at 3Q25 deal volume, values declined with average transaction size down about 55% – a sign of uneven recovery across sub-sectors, according to PwC. It cited strength in luxury, softness in economy, and a still-recovering corporate travel base.

Private equity (PE) remains cautious, contributing just 10% of disclosed deal value YTD—a sharp drop from more than 50% in 2024, PwC noted. The few notable PE deals this year have focused on luxury resort acquisitions. The reason for this, according to PwC, is likely related to the same issues affecting other sectors. High interest rates—combined with the asset-heavy nature of the sector and persistent valuation gaps—have raised the bar for expected returns and made it more difficult for PE buyers to justify deals outside of top-tier assets.

With less competition from private equity, corporate acquirers concentrated on properties that expand loyalty ecosystems, enhance personalization capabilities, or deepen cross-channel customer engagement.

Strategic transactions have filled the gap, with that value up about 7% year over year, according to PwC.

Cross-border investment has also held steady, signaling continued international appetite for U.S.-based assets despite geopolitical headwinds.

Meanwhile, gaming has become a hotspot for activity: all three of the largest deals in the second half of 2025 involved digital gaming assets and foreign counterparties.

PwC added that back-end transformation is gaining traction alongside guest-facing innovation. Operators and investors are targeting back-office modernization across finance, HR, logistics, and event tech to boost efficiency and scalability. At the same time, platforms that elevate personalization, loyalty, and digital engagement are reshaping the front-end experience.

The common thread: building end-to-end digital infrastructure that blends AI, operational excellence, and experience-led monetization.

Developments to watch

Agentic AI use cases are accelerating with AI assistants rebooking itineraries in real time. 

In hospitality, predictive analytics and digital concierges are enhancing service and efficiency. In gaming, adaptive platforms are redefining personalization. Rather than replacing workers, the most valuable use cases empower staff to deliver better, more human experiences.

In a world blending digital and physical experiences, PwC suggested trusted brands offer more than familiarity—they offer strategic insulation. Investors are seeking assets where loyalty, recognition, and content ecosystems drive monetization and margin. 

As AI deployment scales, data governance is separating leaders from laggards, PwC said. M&A strategies increasingly hinge on the ability to unify, activate, and protect customer data across platforms and regions.

Buyers are investing in full-stack platforms that combine content, loyalty, booking, and analytics. The goal: create seamless, end-to-end guest journeys that blur traditional sector lines.

Engagement is now a quantifiable enterprise value, PwC continued. Dealmakers are assigning real valuation to loyalty ecosystems and their ability to drive cross-brand conversion, retention, and upsell.

With capital costs still elevated, deal success will depend on post-close clarity. Day One integration plans should prioritize data readiness, customer identity unification, and loyalty platform integration to accelerate value capture.