The years 2004 through 2007 witnessed a rush of takeover deals in the lodging industry, in which numerous publicly traded hotel companies and hotel real estate investment trusts (REITs) were acquired—mostly by private equity firms, in many cases, Blackstone Group. Notwithstanding the suspension of such activities in the past two years, this article analyzes what factors determine the choice of the targets during that period in the lodging industry. An examination of these takeover deals determined that targets were most likely to: (1) be either a large hotel company or a relatively small REIT; (2) have a high percentage of fixed assets and a low level of debt; (3) have a mismatch between growth prospects and available resources; and (4) be in their middle age as publicly traded firms. Conditions that permit acquisitions, including availability of credit, will eventually return, making this analysis useful to current and future owners, investors, and executives in the lodging industry. Those who want to be acquired, for instance, can adjust their corporate profile to be more attractive, and those who wish to discourage acquisition can take on debt and spin off assets to be less attractive
