LOS ANGELES — For decades, luxury hotels have largely been operated by brands, but third-party management is growing more prevalent in that space.
That's why Davidson Hospitality Group President and CEO Thom Geshay sees great potential in developing expertise in that area to help fuel growth for his company.
Speaking with Hotel News Now at the 2025 Americas Lodging Investment Summit, Geshay said Davidson's track record in larger and more complicated properties helps them earn a reputation as an operator of choice for luxury assets.
"Right now, there just isn't a lot of operators that can focus on luxury and do luxury well, so we're spending time in the space," he said. "We've got people on our team that have have a lot of and deep luxury experience, and those opportunities will come."
He said winning a management contract for a luxury hotel can be an especially big win for third-party operators.
"Luxury assets don't trade as frequently; they don't turn over as often," he said. "They tend to have longer management contracts because they're controlled by the brands. But as those start to turn owners — private equity, REITs — they're going to need trusted partners to turn to, in addition to the brands, that have the ability to manage them, and we want to be in that space and be ready for it when it happens."
For more from HNN's interview with Davidson's Thom Geshay, which includes discussions about Davidson's new owners Nautic Partners, how the company is prioritizing organic growth over acquisitions, expectations for 2025 and more, watch the video above.