Consolidation in Lodging

The lodging sector is experiencing a wave of consolidation as investors look to strengthen portfolios and adapt to shifting travel demands. Recent deals highlight this trend, with Rockbridge acquiring the iconic Hotel ZaZa properties in Austin, Dallas, and Houston. These urban luxury hotels are known for delivering unique guest experiences and are now part of Rockbridge’s growing portfolio.

This trend builds on earlier transformative deals. Marriott’s $13 billion acquisition of Starwood Hotels in 2016 set the stage for large-scale consolidation, while the joint acquisition of Extended Stay America by Blackstone Real Estate Partners and Starwood Capital Group for $6 billion in 2021 highlighted the appeal of specialized lodging segments.

KSL Capital Partners' acquisition of Hersha Hospitality Trust in 2023 is another key moment in this trend. Hersha’s strong portfolio of urban and resort properties made it a natural target, and taking the company private enables KSL to unlock new operational efficiencies.

What does this mean for the sector? Consolidation brings operational efficiencies and strengthens brands, but it also signals intensified competition for independent operators. For investors, it’s an opportunity to establish or expand their footprint in prime markets while meeting the growing demand for distinctive guest experiences.

As consolidation continues to shape the hospitality sector, marking these transformative deals with custom awards is a great way to commemorate their significance. Contact Polaris to design unique deal toys that reflect the creativity and vision behind these achievements.