This study originated from the question of whether additional wealth gains from merger and acquisition activities accrued to shareholders of both acquiring and target hotel firms since there is no enough evidence related to the hospitality industry; The result indicated that corporate takeovers generate, on average, significant positive additional gains to shareholders of acquiring firms of non-casino hotel firms and shareholders of target firms of both non-casino and casino hotel firms. Shareholders of acquiring firms of non-casino hotel firms, on the other hand, earn normal returns from the takeover proposals. Furthermore, the results showed that there is a difference in the size of additional gains between acquiring firms of non-casino hotel and casino hotel firms, and that there is a difference in size of additional gains between target firms of non-casino hotel and casino hotel firms
