Hospitality Software M&A: A Founder's Guide to the 2025-26 Market

If you are a founder running a hospitality software business, the market for your company has never been more active. The convergence of post-pandemic recovery, artificial intelligence, and aggressive private equity deployment has transformed hospitality technology into one of the most sought-after verticals in software M&A. Deal values in travel and hospitality technology surged 147% year-over-year in 2024, reaching record levels; and momentum has only accelerated into 2025 and 2026.

For founders of property management systems (PMS), revenue management tools, guest experience platforms, and hotel operations software, this environment presents a rare window. Private equity firms are sitting on an estimated $300 billion+ in unallocated capital earmarked for technology businesses generating between $50 million and $500 million in annual recurring revenue. Strategic acquirers like Agilysys, Mews, and Jonas Software are executing aggressive buy-and-build strategies. And the broader hospitality industry, which generated $57.3 billion in hotel investment volume in 2024, is investing heavily in the technology layer that underpins modern operations.

This guide examines the hospitality software M&A landscape in detail: the deals shaping the market, the valuations founders can expect, the acquirers driving consolidation, and the practical considerations for a CEO weighing a transaction. Whether you are operating a niche solution for independent hotels or a platform serving enterprise chains, understanding these dynamics is essential for making an informed decision about your company's future.

The hospitality software sector is at an inflection point. The fragmented landscape of point solutions is giving way to integrated platforms, and acquirers are paying premium prices for businesses that have built defensible positions. For founders who have spent years building mission-critical software, the question is no longer whether buyers will come knocking; it is how to maximise the outcome when they do.

Market Overview

The global hospitality technology market encompasses a broad range of software categories, from property management systems and revenue management to guest engagement, labour management, and payments. Collectively, global travel technology spending is expected to surpass pre-pandemic levels by a significant margin in 2025, with the 25 companies in AGC Partners' Travel and Hospitality Tech Index delivering nearly three times the growth of the S&P 500 since 2020.

Property Management Systems

PMS platforms sit at the heart of hotel operations, managing reservations, check-in/check-out, room assignments, housekeeping, and billing. The PMS market remains remarkably fragmented, with hundreds of vendors serving everything from boutique properties to global chains. Cloud-native PMS platforms have been the primary beneficiaries of M&A activity, as acquirers seek to displace legacy on-premise systems.

Mews, the Czech-founded PMS provider, exemplifies the growth trajectory possible in this space. The company raised $110 million at a $1.2 billion valuation in March 2024, then followed with a $300 million Series D at a $2.5 billion valuation in January 2026: the largest funding round in hospitality software history. Mews now serves over 15,000 customers across 85 countries and processed $19.7 billion in platform transaction volume in 2025, with SaaS gross profit growing 55% year-over-year.

Cloudbeds, another cloud PMS provider, reached $84.8 million in revenue in 2024, serving over 20,000 properties across 157 countries. The company has raised a total of approximately $253 million across multiple funding rounds, including a $150 million Series D.

Revenue Management and Business Intelligence

Revenue management systems (RMS) help hotels optimise pricing and inventory decisions. This category has seen significant consolidation, with Lighthouse (formerly OTA Insight) raising $370 million in Series C funding to expand its commercial intelligence platform. ProfitSword, a business intelligence provider, was acquired by Alpine Software Group (ASG) and integrated into the Actabl platform alongside labour management tool Hotel Effectiveness and operations software ALICE.

Guest Experience and Operations

Guest-facing technology, including self-service check-in, messaging platforms, and upselling tools, represents a growing area of M&A interest. Ariane Systems, a self-check-in kiosk provider, was acquired by Jonas Software (a Constellation Software operating group), signalling the interest of serial acquirers in hospitality-specific niches.

M&A Activity and Deal Flow

The hospitality software M&A market has been characterised by three distinct buyer types: private equity platforms executing roll-up strategies, strategic acquirers expanding their product suites, and large technology companies entering the vertical. Each has contributed to a surge in deal activity that shows no signs of abating.

Private Equity-Backed Consolidation

PE firms have been the most active force in hospitality technology M&A. With cheaper debt available following rate cuts in late 2024 and substantial dry powder reserves, PE-backed platforms are pursuing add-on acquisitions at pace.

Alpine Software Group (ASG), backed by Alpine Investors, has been particularly aggressive. ASG assembled the Actabl platform through a series of acquisitions: Transcendent (2019), ProfitSword (2020), Hotel Effectiveness, and ALICE. The resulting integrated platform combines business intelligence, labour management, and hotel operations software, serving a broad base of hotel management companies.

Jonas Software, an operating group within Constellation Software, acquired Ariane Systems to add self-check-in solutions to its hospitality portfolio. Constellation's model of acquiring vertical market software businesses and holding them permanently makes it a unique player; founders who sell to Jonas retain operational autonomy but benefit from shared services and best practices across Constellation's portfolio of over 1,000 companies.

Strategic Acquisitions

Strategic acquirers have focused on expanding their product suites to capture a greater share of hotel technology spending.

Agilysys, a publicly traded hospitality technology provider, acquired Book4Time for approximately $150 million in August 2024. Book4Time is a leading spa management SaaS platform serving many Forbes 5-Star-rated properties. The acquisition extended Agilysys' reach beyond its core PMS and point-of-sale offerings into the spa and wellness segment, adding high-margin subscription revenue.

Mews has been on an acquisition spree, completing three acquisitions in 12 months: Hotello, Nomi, and Frontdesk Anywhere (a San Francisco-based cloud PMS). These acquisitions have been critical to Mews' strategy of building market share in the United States, where it aims to replicate the growth trajectory of Toast in the restaurant technology space.

Cross-Sector Technology Entry

Horizontal software companies and adjacent-market players are increasingly entering hospitality technology through acquisition. Marketing technology, payments, and data analytics firms see hospitality as a large, underpenetrated market ripe for technology-driven transformation.

The expansion of deal activity into marketing technology, loyalty platforms, and other travel verticals suggests that the addressable market for hospitality software M&A is widening. AGC Partners projects continued momentum in M&A activity into 2026 and beyond, driven by both traditional hospitality technology targets and adjacent categories.

Notable Recent Transactions

Deal	Buyer	Approximate Value	Date
Book4Time	Agilysys	$150 million	August 2024
Frontdesk Anywhere	Mews	Undisclosed	2024
Ariane Systems	Jonas Software (Constellation)	Undisclosed	2025
Mews Series D	EQT Growth (lead)	$300 million funding	January 2026
Lighthouse Series C	Various	$370 million funding	2024
Hostaway	Various investors	$365 million raise	2024

Valuation Benchmarks

Valuations in hospitality software vary significantly based on business model, growth rate, customer concentration, and the strategic importance of the product to hotel operations. Founders should understand the key multiples and the factors that drive premiums.

Revenue Multiples

Public travel and hospitality software companies trade at a median of approximately 1.8x revenue, according to Multiples.vc data from October 2025, placing the sector at the lower end of vertical software multiples. This median includes mature, slower-growth businesses like Sabre and Amadeus. High-growth, cloud-native PMS and operations platforms command significantly higher multiples in private transactions.

Mews' trajectory illustrates the premium for growth: from a $1.2 billion valuation on approximately $100 million in revenue (roughly 12x revenue) to $2.5 billion as SaaS gross profit grew 55%. Private SaaS companies with strong net revenue retention and cloud-native architectures routinely achieve 6x to 12x ARR in the current market.

EBITDA Multiples

For profitable hospitality software businesses, EBITDA multiples typically range from 10x to 18x, depending on scale, growth, and margin profile. Businesses with strong recurring revenue, high gross margins (above 70%), and low customer concentration can expect to be at the upper end of this range.

What Drives Premium Valuations

Several factors consistently drive premium valuations in hospitality software M&A:

• Recurring revenue model: Subscription-based SaaS businesses command higher multiples than those reliant on licence fees or transaction-based revenue
• Net revenue retention above 110%: Demonstrates organic growth within the existing customer base through upselling and expansion
• Payments integration: Software platforms that embed payment processing generate high-margin, sticky revenue; Mews processed $19.7 billion in payment volume in 2025
• Cloud-native architecture: Buyers are willing to pay more for platforms that do not require migration from on-premise infrastructure
• Operational criticality: Software that is deeply embedded in daily hotel operations (PMS, RMS, labour management) is valued more highly than peripheral tools due to high switching costs
• Customer quality: Serving enterprise hotel groups and branded chains signals scalability and reduces perceived risk

Key Acquirer Profiles

Mews

Mews is the most aggressive strategic acquirer in cloud PMS, using its substantial funding to acquire competitors and expand geographically. Its acquisition criteria favour cloud-native PMS businesses with established customer bases in target geographies, particularly North America. Mews aims to build a comprehensive hospitality operating system comparable to what Toast has achieved in restaurants.

Agilysys

Agilysys (NASDAQ: AGYS) focuses on high-end hospitality, serving hotels, resorts, casinos, and cruise lines. Its acquisition of Book4Time signals an appetite for adjacent categories that complement its core PMS and POS offerings. Agilysys targets profitable SaaS businesses with strong positions in premium hospitality segments.

Alpine Software Group (ASG) / Actabl

ASG, backed by Alpine Investors, pursues a platform roll-up strategy in hotel operations technology. The Actabl platform was built entirely through acquisition, and ASG continues to seek add-on targets in business intelligence, labour management, and operations software for hotels.

Jonas Software / Constellation Software

Jonas Software is Constellation Software's operating group focused on hospitality and related verticals. Constellation acquires vertical market software businesses at 5x to 7x EBIT, holds them permanently, and grants significant operational autonomy. For founders who value independence and a long-term home for their business, Constellation offers a differentiated proposition.

Private Equity Firms

Numerous PE firms are active in hospitality technology, including EQT Growth, Tiger Global, Atomico, HarbourVest, and Viking Global Investors. These firms typically invest in growth-stage platforms or back management teams to execute roll-up strategies.

Consolidation Drivers

Several structural forces are accelerating consolidation in hospitality software:

Cloud migration: The hospitality industry's shift from on-premise to cloud-based systems is creating a once-in-a-generation replacement cycle. Cloud-native vendors are acquiring legacy providers to capture their customer bases and migrate them to modern platforms.

Platform expansion: Hotels increasingly prefer integrated platforms over point solutions. Acquirers are assembling comprehensive suites by purchasing best-of-breed tools in adjacent categories: PMS, RMS, labour management, guest experience, and payments.

AI integration: Artificial intelligence is becoming a core differentiator in hospitality software, from dynamic pricing to predictive maintenance and personalised guest experiences. Acquirers are buying AI capabilities they cannot build quickly enough in-house.

Post-pandemic technology investment: The staffing challenges and operational disruptions of 2020-2022 permanently accelerated technology adoption in hospitality. Hotels that previously relied on manual processes are now committed technology buyers, expanding the addressable market for software vendors.

Fragmentation: The hospitality software market remains highly fragmented, with hundreds of vendors serving niche segments. This fragmentation creates abundant targets for consolidators and roll-up strategies.

What This Means for Founders

If you are a founder of a hospitality software business, several practical takeaways emerge from the current market:

Timing is favourable: The combination of record PE dry powder, strategic acquirer appetite, and falling interest rates has created an exceptionally strong seller's market. Founders who have been waiting for the right moment to explore a transaction should recognise that conditions are unlikely to improve materially from here.

Recurring revenue is paramount: Buyers are paying significant premiums for SaaS businesses with predictable, recurring revenue streams. If your business still has a meaningful licence or services component, consider accelerating the transition to a subscription model before going to market.

Payments can transform your valuation: Embedding payment processing into your platform can dramatically increase both revenue and valuation multiples. Mews' $19.7 billion in payment volume is a key driver of its $2.5 billion valuation.

Know your buyer universe: The range of potential acquirers spans PE-backed platforms, public strategic buyers, serial acquirers like Constellation Software, and growth equity investors. Each offers a different transaction structure, valuation approach, and post-close experience. Understanding which buyer type aligns with your goals is critical.

Prepare for due diligence on retention metrics: Acquirers scrutinise net revenue retention, gross margin quality, customer concentration, and product stability. Ensuring these metrics are strong and well-documented before engaging buyers will maximise your outcome.

Integration risk is a key concern: Buyers assess how easily your technology can integrate with their existing platforms. Clean APIs, modern architecture, and documented integration capabilities all reduce perceived risk and support higher valuations.

Regional Dynamics

The hospitality software M&A market exhibits distinct regional characteristics that founders should understand.

North America is the most active M&A market, driven by the concentration of PE capital, the presence of major acquirers like Agilysys, and the sheer size of the US hotel market. Mews' three North American acquisitions in 12 months underscore the strategic importance of this region.

Europe has produced many of the category-defining companies (Mews from the Czech Republic, Lighthouse from Belgium, Ariane Systems from France) and remains a fertile hunting ground for acquirers seeking innovative technology at potentially lower valuations than comparable US businesses.

Asia-Pacific represents the fastest-growing hospitality market but remains underpenetrated by modern cloud software, creating both organic growth opportunities and potential for acquirers seeking to establish regional presence through M&A.

Founders operating outside North America should recognise that geographic reach can be both a valuation driver (demonstrating international scalability) and a complexity factor (multiple currencies, regulatory environments, and customer expectations). Positioning your geographic footprint as a strategic asset rather than a limitation is important in buyer discussions.

The Opportunity Ahead

The hospitality software M&A market is experiencing a period of unprecedented activity, driven by massive PE capital deployment, strategic platform expansion, and the hospitality industry's accelerating adoption of cloud technology. Deal values have surged, valuations for high-quality assets remain robust, and the pipeline of potential transactions continues to grow.

For founders who have built valuable hospitality technology businesses, this market offers the opportunity to achieve exceptional outcomes. Whether your goal is a full exit, a recapitalisation that provides liquidity while retaining operational control, or a strategic partnership that accelerates growth, the current environment supports a wide range of transaction structures.

The key is preparation: understanding your valuation drivers, identifying the right buyer universe, and presenting your business in the strongest possible light. With the right advisory support, founders can navigate this complex market and secure outcomes that reflect the true value of what they have built.