Accor deal with Inter Continental could lead to wave of consolidation
Rumors of a merger between Accor and InterContinental Hotels Group could foreshadow a wave of acquisitions in the hospitality industry.
The two giants have reportedly discussed a deal internally, though no official moves have been made.
Ralph Hollister, a tourism analyst at GlobalData, explained: “Although this deal seems to be just speculation, the enormity of this potential merger proves that industry consolidation could be accelerated due to behemoths acquiring, merging or striking partnerships with each other to increase market share.”
He added: “Many reasons for a merger between the two companies make the prospect plausible, especially during the current Covid-19 induced economic downturn, during which both companies have experienced significant losses.
“A major reason for this merger would be that th
e newly formed company could achieve savings in central costs.