KSL Sells Davidson Hospitality

The DJIA rose 289 points on Friday while Nasdaq was up 145, the S&P 500 rose 23 points and the 10-year treasury yield continued its march to 4.5% again, up .08 to 4.36%. Lodging stocks were mixed. SVC traded down to another new low AHT was down -8% but SOHO surged 20%.

KSL Capital Partners was reported to have sold management company Davidson Hospitality Group to private equity firm Nautic Partners. KSL will continue to work with Davidson as a manager while Nautic takes its first step into hotel management ownership by purchasing the 86 hotel management company. Nautic does have previous experience in third-party property management, facilities management and corporate lodging services. No transaction value was given. Moelis & Company served as financial advisor to Davidson Hospitality Group.

According to STR, the U.S. hotel industry experienced a 2.5% decrease in occupancy and a 1.3% drop in RevPAR in September 2024 compared to the same month in 2023. Despite the decline in occupancy and RevPAR, the industry saw a 7% YoY increase in rooms under construction, marking seven consecutive months of growth. The Top 25 U.S. markets outperformed the rest of the industry, with RevPAR up 1.2% due to a 2.8% increase in ADR. Houston, Chicago, and Anaheim reported the largest RevPAR gains among these markets.

It took more than 30 years for a new hotel to be built in Clayton, Missouri, and now the city's downtown area has seen two new hotels open within 18 months. The new $50 million Marriott AC Hotel, constructed at the site of the former Clayton Police Department, was developed by Koplar Properties and Homebase Properties. Managed by Concord Hospitality Enterprises, the 11-story hotel boasts 207 guestrooms, more than 3,000 square fee