KSL sells Davidson to industry newcomer

ATLANTA – KSL Capital Partners has sold management company Davidson Hospitality Group to middle-market private equity firm Nautic Partners, marking the group’s first foray into hotel management ownership. The price paid for Davidson has not yet been disclosed.

Davidson Hospitality Group, which focuses on lifestyle full-service, luxury, upscale full-service, and resort properties, boasts over $2 billion in annual revenue under management. It currently manages 86 hotels and resorts; more than 200 restaurants, bars, and lounges; and over 2 million square feet of meeting space across the U.S.

“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.”

A press release stated that 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 has completed more than 155 platform transactions throughout its 38-year history.

The investment in Davidson 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 is serving as financial advisor to Davidson Hospitality Group and Davis Graham and Stubbs are serving as legal counsel. Locke Lord and Kirkland & Ellis are serving as legal counsel to Nautic Partners.