Miami-Based Gencom Secures Majority Ownership of Ritz-Carlton Key Biscayne in $400M Deal with Brookfield
January 19, 2024
As reported by Bloomberg, Miami-based developer Gencom has completed a substantial acquisition, taking a majority stake in the prestigious Ritz-Carlton Key Biscayne resort from Brookfield Asset Management. This noteworthy transaction, valued at over $400 million, signifies Gencom’s expanded ownership, marking a transition from its previous minority stake. However, the specific details of Gencom’s ownership status, whether sole or shared, remain undisclosed, with representatives from Gencom choosing not to comment and awaiting Brookfield’s response.
The Ritz-Carlton Key Biscayne resort, featuring 302 rooms, was constructed in 2000 by Watermark Lodging Trust and is located at 455 Grand Bay Drive on an island just east of Miami. In 2022, Brookfield assumed control of the property, acquiring the Chicago-based trust for a substantial $3.8 billion. Last year, Brookfield further solidified its position by refinancing the complex with a significant $210 million.
This move by Brookfield represents its second major hospitality divestment in South Florida in recent years. As one of the world’s largest real estate investors, Brookfield had previously sold the 1,000-room Diplomat Beach Resort for an impressive $835 million last year, marking the most prominent hotel sale in the United States since the onset of the COVID-19 pandemic.
Under the leadership of Karim Alibhai, Gencom emerges as a prominent hospitality investor and developer in Miami. The acquisition of the Ritz-Carlton Key Biscayne adds another valuable asset to Gencom’s portfolio. Notably, the company had previously secured a ground lease for the James L. Knight Center redevelopment into a three-tower complex in collaboration with Hyatt, highlighting its commitment to transformative projects in the city.
As Gencom assumes control of the Ritz-Carlton Key Biscayne, industry observers eagerly anticipate insights into its strategic vision for the iconic resort. With a history of groundbreaking developments, including the upcoming three-tower complex in partnership with Hyatt, Gencom’s influence in shaping Miami’s hospitality landscape is set to deepen. The dynamic leadership of Karim Alibhai positions Gencom as a critical player in the ever-evolving real estate scene in Miami.
