News & Noteworthy

Article - Hotel Sector Hitting M&A Stride Amid Growth, Cheap Money
AUGUST 04, 2015

Bruce Bronster (Partner, New York) was quoted in an article published by Law 360 on July 29th entitled "Hotel Sector Hitting M&A Stride Amid Growth, Cheap Money." The article focused on M&A activity within the hotel industry and included Bruce's commentary on the potential risks of going IPO in the current market. He also shared his insight on the opportunity for larger hotels to diversify and create efficiencies by merging with a midsize or more boutique player in the market

  • "There's a certain market risk in going IPO, because you have to assume the market is going to look like what it looks like now. And if you fail, it eliminates your avenue to go that route and it's really damning," noted Bruce Bronster of Windels Marx Lane & Mittendorf LLP.
  • But if a public company comes courting, it can offer the target company an opportunity to tap the markets without having to shoulder all the risks of an IPO, Bronster said.
  • "When an industry is hot, active and growing, you see this kind of [M&A] behavior," Bronster said.
  • For the larger hotel company looking to pick up a more boutique player or for the midsize firm looking to merge with a rival, these deals offer a chance to create new efficiencies and economies of scale that will likely be vital to staying competitive as the market continues to mature, according to Bronster.

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