Davidson Hospitality enters new partnership with Nautic Partners
Deal News | Nov 01, 2024 | Nautic
Davidson Hospitality Group, a leading hospitality management company, has announced a new partnership with Nautic Partners, a middle-market private equity firm, which will acquire Davidson from KSL Capital Partners, in collaboration with Davidson's management. Davidson has a substantial $2 billion in annual revenue under management and ranks prominently among third-party hotel managers. Thom Geshay, Davidson's CEO, expressed enthusiasm for this partnership, aligning with Davidson's strategic vision. Nautic, pursuing an investment strategy that collaborates with talent in specific industries, deems this partnership a strategic expansion into hospitality, backed by its recent $4.5 billion fund. The firm aims to support Davidson’s growth objectives. KSL Capital’s partner, John Ege, regards this partnership transition positively, noting Davidson’s growth under KSL's tenure. Various advisory firms, including Moelis & Company and legal counsels, facilitated the transaction.
Sectors
- Hospitality
- Private Equity
- Legal Advisory
Geography
- United States – Davidson Hospitality Group and Nautic Partners are based in the United States, where the transaction and partnership are taking place.
Industry
- Hospitality – Davidson Hospitality Group is a management company in the hospitality industry, overseeing operations for hotel properties.
- Private Equity – Nautic Partners is a private equity firm involved in acquiring Davidson Hospitality Group, marking its expansion into the hospitality sector.
- Legal Advisory – Several legal advisory firms, including Davis Graham and Stubbs LLP, Locke Lord LLP, and Kirkland & Ellis LLP, are facilitating the legal aspects of the acquisition.
Financials
- 2 billion – Davidson Hospitality Group has over $2 billion in annual revenue under management.
- 4.5 billion – Nautic Partners' recent private equity vehicle, Nautic Partners XI, is a $4.5 billion fund.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Davidson Hospitality Group | Target | Company | A hospitality management company with over $2 billion in annual revenue under management. |
| Nautic Partners | Bidding Company | Company | A middle-market private equity firm acquiring Davidson Hospitality Group. |
| KSL Capital Partners LLC | Selling Company | Company | An investment firm selling Davidson Hospitality Group to Nautic Partners. |
| Thom Geshay | CEO/President, Davidson Hospitality Group | Person | Expressed enthusiasm for the partnership with Nautic, aligning with strategic growth vision. |
| Mark Perlberg | Managing Director, Nautic Partners | Person | Spoke on Nautic’s commitment to support Davidson’s strategic objectives. |
| John Ege | Partner, KSL Capital Partners | Person | Commented on the successful partnership with Davidson under KSL's ownership. |
| Moelis & Company LLC | Financial Advisor | Company | Served as financial advisor to Davidson Hospitality Group. |
| Davis Graham and Stubbs LLP | Legal Advisor | Company | Provided legal counsel to Davidson Hospitality Group. |
| Locke Lord LLP | Legal Advisor | Company | Served as legal counsel to Nautic Partners. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Provided legal counsel to Nautic Partners. |