Mergers, Acquisitions and Alliances in the European Hospitality Industry

Abstract

Projections are made concerning the nature and focus of merger, acquisition, and alliance activity in the post‐1992 environment by both US and European hospitality firms. Recommendations are offered concerning the most viable business strategies facing hospitality organisations in the Internal Market of 1992.

Acquisitions, Shareholder Wealth and the Lodging Sector: 1980‐1990

“…Acquisitions in the lodging sector grew in the 1970s and peaked in the 1980s[2]. This was the vehicle for growing and maintaining market share, since markets were saturated and the fixed costs of new concept development were high.…”

Corporate Governance in the Hospitality and Tourism Industry: Theoretical Foundations and Future Research

“…Since M&As are highly prevalent in the HT industry, a few papers (8.3%) have provided an overview and recommendations related to industry consolidation (e.g., Canina et al, 2010; Crawford-Welch & Tse, 1990; Kantor, 1970; J. Kim & Zheng, 2014; Linowes, 1970; Price, 1961).…”

The international hospitality business

“…As regionally-based trading blocs in Europe, the Americas and the Asia Pacific have taken shape, the level of business activity relating to mergers, acquisitions and alliances has intensified. Crawford-Welch and Tse [52] consider some of the scenarios in Europe in the run-up to completion of the internal market in 1992 and predicts that this form of activity will influence the ways in which hospitality firms in Europe formulate strategy and compete with one another. Kwansa [64] examines the shareholder wealth effects of acquisitions in the US hotels sector during the 1980s.…”

“…Projects the nature and focus of merger, acquisition and alliance Mergers and acquisitions and Tse [52] activity in the post-1992 environment by both US and European hospitality firms and comments on viable business strategies Tse and Olsen [53] Reports a study which extends Porter's framework of business Strategies and structure strategy by exploring the management of restaurant firms in the USA, especially competitive methods, strategy and structure Fender [54] Reviews the strategic planning process and considers the practical Strategic planning application and value of strategic frameworks to planning and strategic thinking…”