Offerings and M&A Activity Will Occur in 2004
|March 2004 - PricewaterhouseCoopers estimates
that the pace of Initial Public Offerings (IPOs), public equity raised
and Mergers & Acquisitions (M&As) will increase significantly in
IPOs (Intial Public Offerings)
PricewaterhouseCoopers estimates that in 2004 the U.S. lodging industry IPO activity will be the highest since 1996, when there were 12 public offerings, and $1.06 billion raised. PricewaterhouseCoopers estimates that there will be four to seven IPOs, including several REITs.
PricewaterhouseCoopers estimates that in 2004 total public equity raised will be the greatest since 1997, when there were 29 offerings that raised $3.7 billion. PricewaterhouseCoopers estimates that there will be as many as ten or more secondary offerings with the total raised likely to exceed $3.0 billion.
Mergers & Acquisitions
PricewaterhouseCoopers estimates that in 2004 M&A activity will be the highest since 1999, when there were 11 major transactions. PricewaterhouseCoopers estimates there will be five to ten major transactions. The peak was in 1998 when there were 25 transactions.
The IPO equity, and M&A activity is supported by:
These forecasts are based on discussion with PricewaterhouseCoopers lodging clients and institutional investors. The estimates are provided to express an order of magnitude rather than point forecasts.
PricewaterhouseCoopers (www.pwc.com) is the world’s largest professional services organization. Drawing on the knowledge and skills of more than 125,000 people in 142 countries, we build relationships by providing services based on quality and integrity.
|Also See:||IPO Wave Passes by Hotel Industry, Lodging Industry Claims a Small Fraction of All New Stock Issues / Aug 1999|
|Highland Hospitality Corporation (HIH), a REIT, Expects IPO Proceeds of $342.3 million; Organized to Take Advantage of Lodging Investment Opportunities / December 2003|
|Despite Having Neither Cash Flow Nor Operating Income Wynn Resorts' Stock Price Up 180% Since IPO / March 2004|
|Smaller than Anticipated IPO Raised $202.5 million for Ashford Hospitality Trust / August 2003|
|2003: What Now? Cornell Hotel Society Panel Discusses 2002 Performance and Perspective for the New Year / March 2003|