Davidson Hospitality Group, a leading hospitality management company celebrating its 50th anniversary this year, today announced that it has entered into a new partnership with Nautic Partners, a middle-market private equity firm. As part of this partnership, Nautic Partners will acquire Davidson Hospitality Group from an affiliate of KSL Capital Partners, LLC, in partnership with Davidson management.
Davidson Hospitality Group boasts over $2 billion in annual revenue under management and ranks number one in both gross annual revenue per room and gross annual revenue per property as reported by Hotel Business among third-party hotel managers. The company’s unique vertical operating model, which focuses on lifestyle full-service, luxury, upscale full-service, and resort properties, has been instrumental in its ability to deliver exceptional financial performance and outstanding guest experiences.
We are thrilled to embark on this new chapter with Nautic Partners. Nautic’s commitment to supporting the long-term growth and success of its portfolio companies aligns perfectly with our strategic vision. We are confident that their partnership will enable us to continue delivering exceptional hospitality experiences while exploring new opportunities for expansion and growth. Thom Geshay, CEO and President of Davidson Hospitality Group
Nautic Partners pursues a thematic and proactive investment strategy to partner with executive talent in specific sub-sectors within the Healthcare, Industrials, and Services industries. The firm recently held a final closing on its most recent private equity vehicle, Nautic Partners XI, a $4.5 billion fund. Nautic’s investment in Davidson Hospitality Group represents a strategic expansion into the hospitality sector, underscoring the firm’s confidence in Davidson’s operating model and growth potential. The investment builds upon Nautic’s previous sector experience in third-party property management, facilities management, and corporate lodging services.
Nautic Partners is committed to supporting Davidson’s management team in achieving its long-term strategic objectives. We believe in the strength of Davidson’s vertically focused operating model and are excited to partner with the team to drive continued growth and success. Mark Perlberg, a Managing Director at Nautic Partners
Nearly a decade ago, we set out to partner with a management company that not only shared a similar operating philosophy to our own, but a similar set of values. We are proud of our successful partnership with Davidson. The company’s growth and success during our ownership has been more than impressive and is a testament to the strength of the Davidson platform. We are confident that Davidson is in the right hands with Nautic as Davidson looks to its next phase of growth. Through management of a number of our existing assets, Davidson remains an important management partner to KSL. We look forward to continuing to work with Davidson on both our existing portfolio and on future projects. John Ege, Partner at KSL Capital Partners
Moelis & Company LLC is serving as financial advisor to Davidson Hospitality Group and Davis Graham and Stubbs LLP are serving as legal counsel. Locke Lord LLP and Kirkland & Ellis LLP are serving as legal counsel to Nautic Partners.
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