The organisation announced that Midnight Train to Georgia writer Jim Weatherly and English songwriter Graham Gouldman also made the cut. Mark James, the writer behind Always on My Mind - covered by Elvis Presley and Willie Nelson - rounds out the list of five inductees.
The new class beat out top acts that were also up for nomination, including Madonna, John Mellencamp, Sade, Nile Rodgers and Led Zeppelin's Jimmy Page and Robert Plant.
Davies, the Kinks leader singer and chief songwriter, penned the band's hits You Really Got Me, Lola and Tired of Waiting For You.
The Songwriters Hall of Fame gala will be held on June 12 at the New York Marriott Marquis.
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