A local investor group, led by New Orleans businessman Bobby Guidry and Florida developer David Bansmer, is in advanced discussions to purchase the historic Le Pavillon Hotel in downtown New Orleans. The deal is estimated to be valued at approximately $43 million, marking a notable local investment in the city's hospitality sector as hotel property values adjust.
This potential acquisition highlights a trend of renewed local interest in New Orleans hotels, especially as market prices become more attractive. The Le Pavillon Hotel has been a significant landmark in the city for over a century.
Key Takeaways
- Bobby Guidry and David Bansmer are in talks to buy Le Pavillon Hotel.
- The deal is valued near $43 million, reflecting a lower price than a decade ago.
- This would be the second major New Orleans hotel purchase for the duo since May 2024.
- The acquisition suggests continued optimism for New Orleans' tourism economy.
- National hotel transaction volumes have decreased, impacting prices.
Guidry and Bansmer's Growing Hotel Portfolio
Bobby Guidry and David Bansmer have been active in the New Orleans hotel market. This potential purchase would be their second significant hotel acquisition in less than two years. In May 2024, the partners acquired the Marriott Courtyard/SpringHill Suites complex in the Warehouse District for $73 million. That property includes 410 rooms and covers nearly a full city block.
David Bansmer confirmed that talks with Ashford Hospitality Trust, the current owner, are advanced. He stated it would be "premature" to announce a final agreement but expressed hope for a closure soon. "We've been taking a very good look at this and I think it's very possible that (purchasing the property) will be the outcome," Bansmer said, indicating a potential finalization before the end of the year.
Transaction Details
- Estimated Value: Approximately $43 million
- Rooms: 226
- Price Per Key: Around $190,000
- Discount: Roughly one-third below the 2015 purchase price
Financial Aspects of the Deal
While specific terms of the Le Pavillon deal have not been publicly disclosed, industry sources suggest the 226-room hotel is valued at about $190,000 per room. This totals just under $43 million. This estimated price is approximately one-third less than what Ashford Hospitality Trust paid for the property ten years ago. Ashford Hospitality Trust has not yet commented on the ongoing discussions.
A Century of History: The Le Pavillon Hotel
The Le Pavillon Hotel has a rich history dating back to its opening in 1907. It originally debuted as the New Denechaud Hotel. Designed by Toledano & Wogan, the steel-frame building featured advanced amenities for its time. It was among the first in New Orleans to have a hydraulic elevator and electric lighting, offering 217 guest rooms.
By 1913, new owners renamed it the Hotel DeSoto. It quickly became a central point for social gatherings in downtown New Orleans. From 1928 to 1948, the hotel's penthouse housed WDSU, the city's first radio station. This further cemented its place in local history and media.
Historic Significance
The building underwent a major transformation in the 1970s, adopting its current name, Le Pavillon. This renovation introduced the ornate European-inspired décor that defines the hotel today. Features include marble floors, Czechoslovakian chandeliers, and hand-carved mahogany furnishings. The hotel received national recognition when it was added to the National Register of Historic Places in 1991. It later joined Historic Hotels of America in 1994, highlighting its architectural and cultural importance.
Ownership Changes and Modernization
For more than 25 years, Brothers Property Corporation, a subsidiary of American Financial Group (AFG), owned Le Pavillon. They purchased the hotel in 1989 for $6.9 million. AFG's hospitality division managed a diverse portfolio of luxury hotels, marinas, apartments, and resorts.
In 2015, Brothers Property Corp. sold the hotel to Dallas-based Ashford Hospitality Trust for $62.5 million. This sale marked a new era for the historic property under a public Real Estate Investment Trust (REIT) focused on upscale assets. Ashford then invested approximately $19 million in renovations. The hotel was converted into a Marriott Tribute Portfolio property, reopening in late 2024. These renovations modernized guest rooms and meeting spaces while carefully preserving the hotel's historic character.
"If the current deal proceeds, it would give Guidry and Bansmer control of a property that bridges New Orleans’ old-world charm and its modern tourism economy."
Market Trends and Local Optimism
Bobby Guidry is well-known for expanding his family's offshore-vessel company, Harvey Gulf International Marine. He later transitioned into commercial real estate, developing hotels in and outside New Orleans for the past two decades. He and Bansmer previously developed the 19-story Marriott Residence Inn on St. Charles Avenue. They also built a 235-room TownPlace/SpringHill Suites complex near Disney World in Orlando.
Their bid for Le Pavillon indicates continued confidence in the long-term strength of New Orleans' hospitality sector. This optimism is based on the city's historic appeal, upcoming major events, and strong convention business. These factors are expected to maintain the importance of its grand hotels to the local economy.
National Hotel Investment Slowdown
Nationally, hotel investment has seen a slowdown. Higher borrowing costs and fluctuating performance have affected property valuations. According to CoStar, U.S. hotel transaction volume decreased by about 33% in the third quarter of 2025. The total reached $4.3 billion, which is the lowest quarterly figure in nearly two years. Average pricing has also declined to approximately $177,000 per room, down from over $200,000 in 2022.
The Le Pavillon sale, at just under $43 million, or about one-third below its 2015 price, aligns with this broader cooling trend in the market. A similar trend was observed earlier this year when the Hilton New Orleans Hotel on St. Charles Avenue sold at a comparable discount compared to its previous sale price in 2013.
Market Snapshot (Q3 2025)
- U.S. Hotel Transaction Volume: $4.3 billion (down 33% year-over-year)
- Average Price Per Room: $177,000 (down from $200,000 in 2022)
- New Orleans Average Daily Rates (ADR): Down 7% year-over-year
- New Orleans Revenue Per Available Room (RevPAR): Off nearly 18% year-over-year
Opportunity for Local Buyers
Despite softer market metrics, local hotel experts see opportunities. Len Wormser, a hotel broker with Hospitality Real Estate Counselors, noted that lower prices have led to a return of local ownership. For nearly two decades, large, out-of-town corporations dominated the market. Over the past year, there has been a noticeable increase in local investors looking to purchase hotels, with prices generally down about 30%.
Wormser believes this shift is "a positive" for the city's long-term market stability. Even with average daily rates down about 7% and Revenue Per Available Room (RevPAR) off nearly 18% year-over-year, New Orleans remains appealing to value-driven buyers. Investors like Guidry and Bansmer are betting that the city's historic landmarks will continue to thrive, leveraging more attainable prices to acquire significant properties.
