Houlihan Lokey – Hospitality Sector Update, H1 2025

The main theme of the report concerns the current trends and state of the hospitality sector in the first half of 2025.

Key findings include high demand for top-tier assets like Wingstop and Dishoom, which may reach historic valuation levels. The mid-market segment is under pressure as consumers seek better value deals, while the luxury segment remains resilient. The importance of value and accessibility in times of economic uncertainty is highlighted. There is a growing popularity of QSR (quick service restaurants) with successful examples like Loungers. Interest in 'experiential' offerings aimed at younger generations is rising, though there are risks associated with trends and entry barriers.