Travel Leisure & Hospitality
Even in a period of high inflation and much discussed cost of living challenges, niche offerings in the travel, leisure and hospitality sectors offer opportunity for investors and acquirers.
The consumer purse continues to be vast and while fashion plays an unhelpful part in the short term success of B2C businesses, it is possible to see long lasting trends which will underpin longer term growth of businesses with the right business model and brand. Trends such as those for plant-based dining, low cost gyms and slow travel for example seem set to have longevity based on a widespread focus on ESG.
The TLG sectors are, however, risky for investors and acquirers given the confluence of consumer sentiment and (often) high fixed costs in the form of rent and staffing. Appetite for such businesses is likely to be more subdued during periods of low consumer confidence and investors and acquirers will be looking for sustainability and down side risk protection.
HMT credentials
The HMT team has a range of credentials in this broadly defined space including
Sub-sectors include
- Travel
- Leisure
- Events & hospitality
We understand how investors and acquirers assess consumer-facing businesses, the questions to ask and answer about sustainability and risk mitigation and the level of evidence required to support contentions of growth. Where businesses in this sector can offer barriers to entry, sustained evidence of traction, opportunity for scale up and downside risk mitigation there will be continued interest in investment and acquisition and we can help businesses in the travel, leisure and hospitality sectors to understand how attractive they are and what they need to work on in order to achieve their funding or M&A objectives.
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