Davidson Hospitality Group Announces New Partnership with Nautic Partners Following Sale by an Affiliate of KSL Capital Partners

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Nov 01, 2024, 10:00 ET

ATLANTA, Nov. 1, 2024 /PRNewswire/ -- Davidson Hospitality Group, a leading hospitality management company celebrating its 50^th 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," said Thom Geshay, CEO and President of Davidson Hospitality Group. "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."

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," said Mark Perlberg, a Managing Director at Nautic Partners. "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."

John Ege, Partner at KSL Capital Partners, stated, "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."

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.

About Davidson Hospitality Group
Celebrating its 50^th anniversary in 2024, Davidson Hospitality Group is an award-winning, full-service hospitality management company comprised of 86 existing hotels and resorts; more than 200 restaurants, bars, and lounges; and over 2 million square feet of meeting space across the United States. A trusted partner and preferred operator for Marriott, Hilton, Hyatt, Kimpton, Margaritaville, and Nobu, Davidson offers a unique entrepreneurial management style and owners' mentality that provides the individualized personal service of a small company, enhanced by the breadth and depth of skill and experience of a larger company. In keeping with the company's heritage of delivering value, Davidson Hospitality Group is comprised of four highly specialized operating verticals: Davidson Hotels, Pivot, Davidson Resorts and Davidson Restaurant Group. In 2024, Davidson Hospitality Group was ranked #1 in Guest Satisfaction among Third-Party Hotel Management Companies by J.D. Power for the third consecutive year. For more information, visit www.davidsonhospitality.com. Follow us on Instagram: @davidsonhospitality and X: @DavidsonHospGrp. Like us on Facebook: @DavidsonHospitalityGroup. Connect with us on LinkedIn: @DavidsonHospitalityGroup. #DavidsonHospitality 

About Nautic Partners
Nautic Partners is a Providence, Rhode Island-based middle-market private equity firm that focuses our expertise and market knowledge on sub-verticals within three sectors: Healthcare, Industrials and Services. Nautic has completed over 155 platform transactions throughout our 38-year history. In pursuing our thematic and proactive investment strategy, we seek to partner with executives and management teams in an effort to accelerate the growth trajectory of our portfolio companies via acquisitions, targeted operating initiatives, and increased management team depth. For more information, please visit www.nautic.com.

About KSL Capital Partners
KSL Capital Partners, LLC is a private equity firm specializing in travel and leisure enterprises in five primary sectors: hospitality, recreation, clubs, real estate and travel services. KSL has offices in Denver, Colorado; Stamford, Connecticut; New York, New York; and London, England. KSL invests across three primary strategies through its equity, credit and tactical opportunities funds. KSL's current portfolio includes some of the premier properties in travel and leisure. For more information, please visit www.kslcapital.com.

Media Contact for Davidson Hospitality Group
Carrie Drost
[email protected]
747-342-2408

SOURCE Davidson Hospitality Group