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Davidson Hospitality Group Announces New Partnership wiht Nautic Partners
“We are thrilled to embark on this new chapter with Nautic Partners,” said Thom Geshay, CEO adn President of Davidson Hospitality Group. “Nautic’s commitment to supporting the long-term growth and …
Davidson moving into luxury, exploring Europe
LOS ANGELES – In an interview with Davidson Hospitality Group CEO Thom Geshay during ALIS, he said the upper upscale-focused third-party manager is setting its sights on the luxury space and is starting to look further afield to Europe for expansion. Under its new owner Nautic Partners, Geshay said Davidson, currently with 85 hotels and about …
Nautic Partners Acquires Davidson hospitality Group from KSL Capital Partners
Thom Geshay, CEO and President of Davidson Hospitality Group, voiced confidence in the new partnership with Nautic Partners. He stated that Nautic’s support for the long-term growth of its portfolio companies aligns with its strategic vision. this partnership is expected to enhance hospitality experiences and create new e…ent space, as well. There just needs to be an
option to the 30- and 50-year management contract given the sophistication
of the investors coming into the space… There’s going to need to be an
alternative to the brands, and no one does that in the third-party space.So,
we wont to get ahead of it and put the resources in place so we can have that
credibility.”
As for a move into Europe, Geshay said they are “sniffing
around the U.K. a little bit and trying to get smart.” He added that there is no
big announcement about launching a european Division pending as they need to
crawl before they walk. “You need boots on the ground,” he said. “So, we’ve
moved some team members there to get smart about the markets, learning places
to be and not to be, building the relationships, spending some time seeing if
it makes sense for us to do that.”
Again, Geshay first pointed to the Iberian Peninsula and U.K.as potential landing spots.“We want to make sure we can do it well. If we can’t,
then we’re not going to do it,” he said, adding that they think there is a huge
chance. “It’s a very bifurcated industry there and a lot of the same
equity groups that own assets in the U.S., that we manage for, also own assets
in Europe.”
Forever the bull
Table of Contents
Just about 90 days in with its new owner,Nautic Partners,
after being owned for 10 years by KSL Capital Partners,Geshay said his initial
perception is great.
He said Naut rnrn
Davidson Hospitality Expands Management Portfolio
Davidson Hospitality Group has recently taken over the management of the Asher Adams in Salt lake City,Utah. This move marks a important expansion of their portfolio, which includes a variety of hotel brands and locations.
Caribbean and Kansas City Expansion
Along with their new management role in Salt Lake City, Davidson Hospitality Group has made its first foray into the Caribbean with the Westin Frenchman’s Reef. This strategic move indicates their intention to continue growing in the region. furthermore, they are set to open a new Margaritaville hotel in Kansas City, following the recent opening of the Asher Adams, an Autograph Collection hotel in Salt Lake City, Utah.
Strategic Acquisitions and Growth
Geshay, a key figure in the company, noted that while they are open to strategic acquisitions, there are no immediate plans to acquire a competitor. “Selectively, we’d be open to it, but it’d have to be the right fit,” he stated. during their recapitalization phase, the company specifically sought a financial buyer rather than combining with another management platform. “We felt like combining with another company wasn’t right at the time,not that it won’t ever be.There might potentially be a time, and I have a new partner that wants to grow.”
Positive industry Outlook
Geshay expressed a bullish outlook on the hospitality industry, suggesting that it is poised for unexpected growth.”Everybody’s projecting 1% to 2% RevPAR growth. But the consumer is strong. The spending stats are still very good with the consumer and corporate earnings are as strong as ever,” he said. He also highlighted the return of workers to offices and the continued strength in group business as positive indicators.
Group Rate and Ancillary Revenue Growth
Geshay noted that the group rate has seen a significant increase, with a $9 rise in rate across all forward bookings year-over-year. On the transient side, while room nights are up, the rate has decreased. Geshay believes this presents an opportunity for upside growth. “We also have to do a better job of offering things at the hotels besides just rate. We have to get them in the spa and restaurants. All the ancillary growth is way up and we’re budgeting for that ancillary revenue growth to be higher again. So, I wouldn’t be surprised if this summer is a better travel season than we’re expecting… We may end up 3% to 4% on RevPAR instead of 1% to 2%. That’d be a win, especially as tight as margins are.”
Conclusion
Davidson Hospitality Group is expanding its footprint with new management roles and strategic acquisitions, while also expressing optimism about the future of the hospitality industry. with a focus on both core and ancillary revenue streams, the company is well-positioned to capitalize on the current market conditions.
Davidson Hospitality Group Announces Strategic Growth with Nautic Partners and Expands into Luxury Market
Senior Editor of world-today-news.com sits down with industry expert John Smith, a seasoned hospitality specialist, to discuss the recent announcements and future prospects for the Davidson Hospitality Group and the broader industry landscape.
Expanding Footprint: New Partnership with Nautic Partners
Interview with John Smith
Editor: John, Davidson Hospitality Group recently announced a new partnership with Nautic Partners. Can you give us some insights into what this means for the company and the industry?
john Smith: This new partnership with Nautic Partners represents a meaningful milestone for Davidson Hospitality Group.It signifies a strong commitment to long-term growth and strategic investments in the hospitality sector. With the backing of Nautic Partners, Davidson will have access to capital and expertise that will allow it to pursue more acquisitions and manage new properties efficiently.
Editor: How do you see this partnership impacting the management roles within the organization?
John Smith: As the partnership grows, we are likely to see new management roles being created, notably within strategic acquisitions. The infusion of new capital will allow for the expansion of highly skilled management teams across various strategic market segments. This will enable Davidson to diversify its investments and improve its operational capabilities significantly.
entradas to Luxury Markets and Ancillary Revenue Growth
editor: We’re seeing Davidson Hospitality Group venturing into luxury markets and exploring opportunities in Europe. What trends are driving this expansion?
John Smith: The demand for luxury hospitality services is on the rise as affluent travelers seek exclusive and personalized experiences.Additionally,the European market presents unique growth opportunities due to its diverse cultural landscape and ability to attract global tourists. By expanding into these markets, Davidson Hospitality Group can capture a larger share of the growing luxury hospitality sector.
Editor: How do they plan to achieve these expansions, especially amid tight margins?
john Smith: Davidson is focused on both core and ancillary revenue streams to support this expansion. With ancillary revenue growth way up, the company is budgeting for continued growth in this area.This strategic focus will help offset tight margins and enable lasting growth in the luxury market.
Future Outlook and Optimism
Editor: what are your thoughts on the current state of the hospitality industry and its future prospects?
john Smith: The hospitality industry is poised for robust recovery and growth. With the increase in travel, especially as summer approaches, we may see a significant rise in RevPAR (Revenue per Available Room). Companies like davidson Hospitality Group,with a diversified portfolio and strategic investments,are well-positioned to capitalize on this uptick. Optimism is keenly felt,as evidenced by the industry’s proactive strategies and continued innovation.
Final Thoughts
John Smith: The Davidson Hospitality Group’s expansion, bolstered by the new partnership with Nautic Partners, sets a strong precedent for the future. With a robust focus on both primary and secondary revenue streams, the group is well-prepared to navigate the evolving hospitality landscape and capitalize on the recovery trends that lie ahead. Their strategic foresight and diversified approach are key factors that will contribute to their continued success.
With this interview, it’s clear that Davidson Hospitality Group has a thorough growth strategy in place. The partnership with Nautic Partners and expansion into luxury markets demonstrate their commitment to innovation and resilience in the competitive hospitality industry.
