out of Memphis who sold the rights to Holiday Inns in Orange County , Fla . They managed to take on one hotel in Augusta , Ga ., and grew a portfolio from there . In 1991 , the business was acquired by Wilton Davidson “ Chick ” Hill , where the Davidson name came from , before Hill sold it in 2006 to a syndicate that included Geshay and past Davidson CEO John Belden . In 2015 , KSL Capital Partners became the majority owner of Davidson , able to provide the company with the growth capital it needed . Nine years later , they are still on board , a peculiarity in the private equity space , which typically has shorter hold periods .
Davidson manages 15 hotels for KSL today . It underwrites hundreds of hotels each year but only a handful of those might work for KSL . “ We ’ ve tried to be very thoughtful about picking owners with different investment criteria , so that we ’ re not always having to compete for deals ,” Geshay said .
Despite Davidson ’ s southern roots , its hotels are spread across the U . S . Its biggest concentrations are in Florida ( 22 hotels ) and California ( 13 hotels ), part of that because of its strong resort business , having formed a dedicated resorts vertical in 2021 , led by EVP Steve Contos . “ It became
The lobby area at Hotel Emery , Autograph Collection in Minneapolis . The hotel is part of Davidson ’ s lifestyle hotel Pivot vertical . apparent that we should have an operational approach for this unique asset type ,” Geshay said at the time of the launch .
It followed a similar move for the company when it introduced a devoted category to lifestyle hotels called Pivot , which it launched in 2016 and is led by EVP Rick Colangelo . Hotels within this subset of Davidson include 21c Museum Hotel Chicago , Canopy by Hilton Philadelphia City Center and Hotel Zephyr Fisherman ’ s Wharf in San Francisco , the inaugural Pivot property .
Davidson might even have another vertical up its sleeve . At one point , Geshay talked through a SWOT analysis of the company . One of its opportunities , he said , resides in the luxury space , where Davidson already has a handful of hotels . “ Some of the longer-term master contracts that have been in place will roll off at some point ,” he said , should an owner want a third-party manager instead of a brand . “ I want to be prepared and in position . The likely outcome is going to be that we ’ ll have a luxury vertical .”
The third-party management space is not immune to disruption . Up to now , Davidson has grown organically , on its own , while others in the space tack on companies in a game of third-party operator consolidation . The sheer volume of management companies today is striking ; some attrition is necessary , if not warranted . “ It ’ s good and bad ,” Geshay explained . On one hand , a company can grow very quickly by ostensibly buying management contracts ; on the other hand , absorbing another company comes with pain points , such as ensuring continuity and integrating cultures . “ We will never say never because it ’ s my job to run a company ,” he said . But don ’ t hold your breath . “ We are firm believers in our culture of character and integrity . We ’ ve been very successful for 50 years now . That ’ s hard . When you merge two cultures , there ’ s also a downside that comes with that . You do see some companies get sidetracked .”
Geshay is not one for distraction . Building a hotel company with an enterprise value north of $ 2 billion makes sure you are tuned in . Geshay is a selfdescribed “ late-night guy ,” but he works smartly : Atlanta traffic is notoriously punishing , so Geshay likes to work from home before driving into the office after rush hour . He ’ s then in the office well past normal quitting time .
Our time up , I walk with Geshay toward the exit of Davidson ’ s office , which , not so different from some hotels , has a ping-pong table adjacent to a shelf of spirits . We halt and are greeted by two Davidson employees that have been with the company for more than a decade . They are both folksy but serious about the pride they share working for Davidson .
Near the elevators , Geshay is approached by a woman . They exchange pleasantries as Geshay offers a reassuring pat on her shoulder that ends in a hug . The woman expels a sigh of relief . It turns out , she had been the one with the difficult day and had placed the note on Geshay ’ s keyboard . Earlier in the day , Geshay said something that crystallized in that moment . “ We all work so hard ,” he said , “ because we don ’ t want to let each other down .”
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