Category: News

Sean O’Neill, Skift

January 29th, 2024

Karim Alibhai’s began his career at a Best Western motel. In the decades since, his firm Gencom has bought, sold, and developed eight Ritz-Carltons and dozens of other luxury hotels. Here’s his formula.

Karim Alibhai knows better than most how to make luxury hotels profitable. He’s the founder and top boss of Gencom, which has owned, part-owned, or developed 8 Ritz-Carltons and 150 hotels under other brands over three decades.

Gencom’s traction is notable, given how tricky it is to get the economics right in luxury hotel deals and development. 

• Prime real estate is pricey. White-glove service is expensive. After such costs, where are the profit margins? 
• Equally challenging is how luxury hotels have seen softness in room rates during most of the past decade, according to STR data as analyzed by Bernstein Research. 

Yet Gencom has defied the averages with its portfolio worth about $7.5 billion. 

Last week, Gencom acquired majority ownership in The Ritz-Carlton Key Biscayne resort in Miami for an unpublicized sum. 

• The real estate investment and development firm plans a $100 million renovation to start next year. 
• Gencom knows the property better than anyone. It co-developed and built the 17-acre resort, which debuted in 2000. It later sold its majority stake. 

This November, Gencom will open Nekajui, a Ritz-Carlton Reserve, in Costa Rica, as a luxury mixed-use complex being built ground-up across 1,400 acres. 

• The three dozen units cost roughly between $3 million and $13 million each. 
• That’s the highest price per square foot Costa Rica has seen for such properties yet. 

Last July, Miami officials okayed Gencom’s and Hyatt’s plan for a billion-dollar development project — with construction set to start next year. 

• Miami Riverbridge will be anchored by a redeveloped 615-room Hyatt Regency Miami. 

Negotiate With the Luxury Hotel Brands 

Alibhai has pushed the major luxury brands to give Gencom some leeway to fine-tune development and operation. 

• “The luxury operators are very good, by and large, but you do need a very active asset management approach where they respect and listen to you — versus them saying ‘I’m St. Regis, I’m Rosewood, I’m Four Seasons, etc., so I know best,” Alibhai said. 
• Exhibit A: In 2017, when Gencom co-acquired the Four Seasons Resort Peninsula Papagayo in Costa Rica (with another developer, Mohari), Four Seasons mandated a $15 million renovation. 
• “We said, ‘Look, we think the potential ROI [return on investment] justifies a bigger, $35 million renovation,” Alibhai said. “But for us to put that in, we need you to change certain things, such as how you’re going to price the rooms and what the staff-to-guest ratios are.” 
• Four Seasons liked that Gencom was a development group willing to invest thanks to its ability to get capital from top-tier lenders. So it agreed to make operations leaner and less costly, such as by trimming middle management and being more assertive in the rates it charges. “Today, that’s one of the most successful Four Seasons resorts,” Alibhai said.  Exhibit B: In 2015, Gencom took a stake in The Ritz-Carlton Fort Lauderdale. “It had a negligible net operating income, yet 18 months later, it had grown almost seven-fold with the same manager, Ritz-Carlton,” Alibhai said.  Exhibit C: Last year Alibhai and his team went to Ritz-Carlton and said that The Ritz-Carlton Key Biscayne resort wasn’t doing as well as it should and that it had seen its heyday. Gencom offered a plan to invest $100 million to upgrade amenities and reposition the hotel’s reputation among travelers.  “Ritz-Carlton agreed because it’s a win-win,” Alibhai said. “If we do x, y, and z, their average rates will go up, so they’ll make more money through their management and incentive fees. But in exchange, they agreed to flexibility in certain financial contributions and so forth and to agree to our plan for reimagining the property by them doing x, y, and z.” 

Residential Underwrites Luxury Hotels 

Alibhai, 59, was one of the first, in the late 1990s, to recognize the value of pairing luxury hotels and residential development. 

• Alibhai’s Gencom helped kickstart the trend by helping Ritz Carlton create its first branded residences. 
• Since then, multiple players have collectively built more than 80,000 hotel-branded residential units, according to Savills. 
• “Luxury travelers were becoming more discerning and looking for better amenities and more elaborate amenities than, say, a spa with three treatment rooms and a small gym,” Alibhai said. “Yet you can’t afford to put all those things in a hotel alone because the occupancy rates won’t justify the operational costs.” 
• “Residential sales help amortize the cost of the better spas, pools, and restaurants quite significantly,” Alibhai said. 
• “To use very rough numbers, a true luxury resort today will cost you almost $2 million a key [or per room or suite] to build because of land costs in coveted locations, the amenities you have to put in, etc.,” Alibhai said. “At $2 million a key, it’s not easy to make the economics work for the hotel itself.” 
• “So what you try to do is, at a minimum, see if you can reduce its costs by 50% by building residential and getting residential profits such that your net cost is instead $1 million a key — to do some quick and dirty math,” Alibhai said. “Now the economics work because your profit from residential paid back half the cost of the hotel, as a rule of thumb.” 
• “When you do ultra-luxury, you’re spending even more, so it’s harder to get costs down as much as a percentage,” Alibhai said. “But you can still catalyze the value of the land across the project and increase the value of everything adjacent.” 

Buying Low, Selling High 

Alibhai works hard to sustain an organizational culture that emphasizes hustle and humility. 

• Alibhai began his career working at what he calls a “negative two-star” Best Western motel. He had to hustle to work his way up to trading Rosewoods, Fairmonts, and Auberges. He tries to instill the hustle culture in his team — and also a willingness to think outside the box — to outmaneuver rivals. 
• A key lesson: “Getting the right entry point on a deal is half the battle of a project’s success,” Alibhai said. Not overpaying for real estate allows room for error and bad luck in the later development work. While that truth may sound obvious, a long list of struggling luxury hotels suggests it’s not widely absorbed. 
• Hubris is one challenge to watch out for. “It’s a mistake to think we’re that much smarter than everyone else in development,” Alibhai said. “For example, we would not go into a tough market that others are avoiding and build a ground-up luxury property and just think some Gencom magic would make it successful.” 
• For instance, Gencom only bought the St. Regis Chicago in a joint venture with GD Holdings in 2021 because it was a pandemic-related distressed sale. Gencom hustled to put together a transaction whose “very complicated” nature deterred rival bids. 
• Similarly, Gencom’s soon-to-open Nekajui, a Ritz-Carlton Reserve, in Costa Rica became an attractive project financially because Gencom acquired the infrastructure, such as the golf course and marina, in a distressed situation in 2015. 
• “We polished the gem, so to speak, so that when buyers came to look at the residential units, we had a lot to show,” he said. “People said, ‘We’ll pay North American prices to be a resident here.’ It’s nearly sold out. If we had built it all ground up, it would’ve been an expensive entry in a greenfield situation where we wouldn’t have known if we would’ve been successful.” 

Right-sizing Luxury Operations 

Experts note that the best-reviewed and the most lucrative luxury and ultra-luxury hotels tend to be owner-operated. What’s notable about Gencom is that it has to work with third-party managers to get the results it wants. 

• Gencom recognized that restaurants and bars are becoming critical to the success of luxury hotels. (Roughly 1 billion photos on Instagram were food-related in 2023, said SproutSocial.) So Gencom insisted that Marriott outsource the St. Regis Chicago’s offerings to Lettuce Entertain You Enterprises, the city’s largest restaurant company. The result includes a just-opened Tuscan steakhouse in collaboration with award-winning Los Angeles-based Chef Evan Funke. 
• “The property is outperforming the market on all metrics in its first 12 months,” Alibhai claimed. 
• In 2017, Gencom bought Rosewood Bermuda, which had been in receivership. Gencom made a $25 million renovation. Its premise was that the operator had only been managing it as a six-months-a-year operation when it could be a nine-months-a-year operation. 
• “Yes, for three months a year, it’s too cold to swim in the ocean,” Alibhai said. “But only 20% or so of the guests are going into the ocean year-round. So you could extend the season to attract people to take board meetings and play tennis and golf if we invest in the facilities.” The early trajectory is positive, and Gencom is now doing a more than $300 million redevelopment of Fairmont Southhampton in Bermuda. 

Link to Skift article by Sean O’Neill,

MIAMI, FL – January 2024 – Affiliates of Gencom, an international owner, developer and manager of hospitality and residential properties, announced today that it has retaken majority ownership in the 291-key Ritz-Carlton Key Biscayne. The transaction was financed by Citigroup and affiliates of KSL Capital Partners, LLC for an undisclosed amount. 

Situated at 455 Grand Bay Drive, the 275,000-square-foot Ritz-Carlton resort rises over 13 stories on Miami’s barrier island of Key Biscayne. The upscale resort features 1,000 feet of beachfront access, along with several swimming pools, a Cliff Drysdale Tennis Center, Caribbean-inspired spa and fitness center, The Club Lounge, six restaurants, bars and cafes, as well as 37,000 square feet of meeting and event space. The resort continues to be recognized by top travel publications such as Conde Nast Traveler, Forbes, and U.S. News & World Report as a leading travel destination in Miami. The property also boasts a luxury residential component with 188 condo-hotel units.  

“The Ritz-Carlton Key Biscayne has become a hospitality anchor for Miami’s Village of Key Biscayne since Gencom co-developed the property in 2000 and we are excited to retake control of the asset for a long-term hold. We look forward to achieving the property’s full potential by embarking on a renovation to ensure it remains a top luxury resort as Miami’s international epicenter continues to expand,” said Karim Alibhai, founder of Gencom.  

 After developing the 17-acre property in 2000, Gencom sold its majority interest to a private REIT in a three property, $750 million transaction. 

“KSL is very excited to lock arms with Gencom, who has an exceptional track record in this market and on resort assets like the Ritz-Carlton Key Biscayne,” said Dan Rohan, Partner and Head of Tactical Opportunities at KSL. “This investment is another example of KSL’s long-term commitment to its core thesis within the hospitality sector, but also our more recent expansion into structured partnerships with like-minded firms like Gencom through our Tactical Opportunities vehicle.”  

Gencom is planning a comprehensive $100 million renovation of the resort, slated to start in 2025, which will include major upgrades to the guestrooms, food & beverage offerings, public spaces and guest amenities.  

The Ritz-Carlton Key Biscayne is part of Gencom’s illustrious branded hotel portfolio, which includes other Marriott Hotels brands such as The Ritz-Carlton Bachelor Gulch; The Ritz-Carlton Philadelphia; The St. Regis Chicago; Nekajui, a Ritz-Carlton Reserve, in addition to other five-star flags such as Auberge, Four Seasons, Rosewood, Fairmont, Hyatt, and more. Today, the Gencom portfolio is comprised of nearly $8 billion in assets under management and includes 23 owned assets in operation or under development with over 7,000 hotel rooms around the world; in addition to 240 properties spanning over 40 locations, comprised of 50,000 keys through its third-party management affiliate, Pyramid Global Hospitality, which oversees hotel property management and operations throughout the U.S. and Europe; and over 2 million square feet through affiliate, Convene, a hospitality company that designs, builds, and manages premium meeting, event, and flexible office spaces.  

About Gencom 

Gencom is a U.S.-based investment firm that owns, operates and develops prized real estate around the world, with an emphasis on luxury hotels, resorts and branded residential properties; and which is also an active owner and investor in hospitality operating platforms. Gencom’s current real estate portfolio is comprised of some of the world’s most iconic hotels, resorts, and destinations which are amongst the leading properties in the industry with key operating partners such as Four Seasons, Ritz-Carlton, Rosewood, Auberge, Fairmont, Hyatt, Marriott and St. Regis. www.gencomgrp.com 

Founded more than 40 years ago, Gencom has grown to become one of the nation’s leading firms specializing in the development and management of luxury resort and residential properties, alongside full-service hospitality operating platforms. Today, the Gencom portfolio is comprised of nearly $8 billion in assets under management and includes 23 owned assets in operation or under development with over 7,000 hotel rooms around the world; in addition to 240 properties spanning over 40 locations, comprised of 50,000 keys through its third-party management affiliate, Pyramid Global Hospitality, which oversees hotel property management and operations throughout the U.S. and Europe; and over 2 million square feet through affiliate, Convene, a hospitality company that designs, builds, and manages premium meeting, event, and flexible office spaces. 

About The Ritz-Carlton Hotel Company, LLC 

The Ritz-Carlton Hotel Company, LLC currently operates more than 100 hotels in 35 countries and territories. For more information or reservations, visit the company web site at www.ritzcarlton.com, for the latest company updates, visit news.marriott.com and to join the live conversation, use #RCMemories and follow along on Facebook, Twitter, and Instagram. The Ritz-Carlton Hotel Company, L.L.C. is a wholly-owned subsidiary of Marriott International, Inc. (NASDAQ:MAR). The Ritz-Carlton is proud to participate in Marriott Bonvoy®, the global travel program from Marriott International. The program offers members an extraordinary portfolio of global brands, exclusive experiences on Marriott Bonvoy Moments and unparalleled benefits including complimentary nights and Elite status recognition. To enroll for free or for more information about the program, visit marriottbonvoy.com 

KSL Capital Partners, LLC 

KSL Capital Partners is a private equity firm specializing in travel and leisure enterprises in five primary sectors: hospitality, recreation, clubs, real estate and travel services. KSL has offices in Denver, Colorado; New York City; Stamford, Connecticut; and London, England. Since 2005, KSL has raised in excess of $21 billion of capital across its equity, credit and tactical opportunities funds. KSL’s current and past portfolio contains some of the premier properties in travel and leisure. For more information, please visit www.kslcapital.com 

The St. Regis Chicago represents the latest strategic acquisition by the two groups, marking both Gencom and GD’s entry into the Chicago market with the first new luxury hotel to be delivered in the area in over a decade

MIAMI, FL – May 15, 2023 – A joint venture between Gencom and GD Holdings, both privately held, internationally recognized owners, developers and managers of hospitality and residential projects, announced today the acquisition of the newly constructed, 192-key St. Regis Chicago, centrally located in the city’s Lakeshore East Loop community of Chicago where the Chicago River meets Lake Michigan.

The 5-star hotel occupies the first 11 floors within the three interconnected towers comprising the luxurious hotel and branded-condominium mixed-use project. The tallest tower at 101 stories is the third highest in the city and is the tallest building designed by a female architect – renown Jeanne Gang and her architectural firm Studio Gang Architects. In addition to spacious rooms and suites, the hotel features the nearly 12,000 square feet of meeting space, including the 5,000 square foot Astor ballroom, and 7,000 square feet of executive function rooms with magnificent and one-of-a-kind views of the city’s timeless landmarks, including the Magnificent Mile, Navy Pier, Grant and Millennium Parks. Boasting over 21,000 square feet of luxurious amenities including the exquisite St. Regis Spa, state-of-the-art fitness center with yoga and group exercise rooms, rooftop terrace, and indoor swimming pool, all of which are accessible from both the hotel and the 393-residence condominium component.

Chicago-based Magellan Development Group has overseen development of the hotel, which is also part of the Magellan-developed 28-acre Lakeshore East master development, one of Chicago’s most successful large scale mixed-use, residential developments in the city’s history. As part of the acquisition by Gencom and GD Holdings, Magellan will be retaining an ownership interest in the project.

The acquisition marks the first addition of a St. Regis brand to each of Gencom and GD’s growing hospitality portfolios, which includes distinguished brands such as The Ritz-Carlton, Ritz-Carlton Reserve, Four Seasons Hotels and Resorts, Hyatt, Rosewood, Fairmont, and Auberge Resorts. This also signifies the joint ventures first entry into Chicago, one of the nation’s top luxury hospitality markets.

“During the pandemic, Gencom saw a unique opportunity to purchase this asset while it was still under construction and strategically arranged to close on the transaction once the property was delivered,” said Gencom’s Chief Investment Officer Alessandro Colantonio, speaking on behalf of the joint venture. “From the onset, we recognized the long-term value of this investment given the strength of the Chicago market and the significance of opening the first luxury hotel downtown in over a decade. Through this acquisition, Gencom and GD also reinforces their relationship with Marriott International, adding yet another high-end hotel brand to each group’s growing hospitality portfolios.”

The St. Regis Hotel will also offer multiple extraordinary dining experiences that will set a new standard for Chicago’s hospitality landscape, encompassing five unique dining venues totaling 580 seats and 38,000 square feet of space. Two of the new restaurant concepts are being led and managed by Lettuce Entertain You Enterprises, Chicago’s acclaimed and largest restaurant company. The first restaurant Miru, located on the 11th floor, is a Japanese concept offering an all-day dining experience from Lettuce Entertain You Chef Hisanobu Osaka. The second restaurant Tre Dita, will be a Tuscan steakhouse in collaboration with award-winning Los Angeles-based Chef Evan Funke, which will open in the Fall of 2023. 

About Gencom

Gencom is a U.S.-based investment firm that owns, operates and develops prized real estate around the world, with an emphasis on luxury hotels, resorts and branded residential properties; and which is also an active owner and investor in hospitality operating platforms. Gencom’s current real estate portfolio is comprised of some of the world’s most iconic hotels, resorts, and destinations which are amongst the leading properties in the industry with key operating partners such as Four Seasons, Ritz-Carlton, Rosewood, Auberge, Fairmont, Hyatt, Marriott and St. Regis. www.gencomgrp.com

Founded more than 40 years ago, Gencom has grown to become one of the nation’s leading firms specializing in the development and management of luxury resort and residential properties, alongside full-service hospitality operating platforms. Today, the Gencom portfolio is comprised of nearly $8 billion in assets under management and includes 23 owned assets in operation or under development with over 7,000 hotel rooms around the world. Gencom’s portfolio also includes a distinct affiliated operating platform: Pyramid Global Hospitality, which oversees hotel property management and operations throughout the U.S. and Europe.

About GD Holdings 

GD Holdings, LLC is a privately held real estate investment company headquartered in Denver, Colorado. The company was founded on a highly disciplined investment approach towards hard assets, specifically real estate, with a focus towards value creation, capital preservation, and enduring quality.  The company encompasses a multi-faceted real estate business – fully engaged in the acquisition, development, ownership and management of hotels and commercial real estate assets.  The depth of its in-house resources allows the company to address every element of the business including acquisition, planning approvals, financing, construction oversight, design, market research, asset management, financial accounting, reporting and legal. GD Holdings has significant direct investments in distinct real estate, including luxury hotels such as Four Seasons Hotels & Resorts, The Ritz-Carlton and St. Regis, alongside other distinguished brands by Marriott and Hilton. GD Holdings continues to actively pursue its growth of hospitality and commercial properties throughout the United States.  The company is well-capitalized and building a portfolio of first-class, long-term assets in strong, diverse markets poised to thrive well into the future.  

About St. Regis Hotels & Resorts

Combining timeless glamour with a vanguard spirit, St. Regis Hotels & Resorts is committed to delivering exquisite experiences at more than 50 luxury hotels and resorts in the best addresses around the world. Beginning with the debut of the St. Regis hotel in New York by John Jacob Astor IV at the dawn of the twentieth century, the brand has remained committed to an uncompromising level of bespoke and anticipatory service for all of its guests, delivered flawlessly by the signature St. Regis Butler Service. For more information and new openings, visit stregis.com or follow Twitter, Instagram and Facebook. St. Regis is proud to participate in Marriott Bonvoy®, the global travel program from Marriott International. The program offers members an extraordinary portfolio of global brands, exclusive experiences on Marriott Bonvoy Moments and unparalleled benefits including complimentary nights and Elite status recognition. To enroll for free or for more information about the program, visit marriottbonvoy.com.

About Magellan Development Group

Magellan Development Group is a family-owned company that was founded in 1996. To date, Magellan is the premier developer of mixed-use properties in Chicago and has extended its footprint to other major U.S. cities, including Minneapolis, Miami, Nashville, Austin, and Somerville, MA. From conception to completion, Magellan looks after all aspects of the development process and has unique experience in interrelated fields of real estate design, construction management, development, development consultation, architecture, leasing, sales and marketing. For more information on Magellan Development Group, please visit: www.magellandevelopment.com.

Media Contact for GD-Gencom:

Schwartz Media Strategies

Yudi Fernandez Kim – yudi@schwartz-media.com; (305) 725-8262

Jen Le – jen@schwartz-media.com; (239) 860-7379

GENCOM-LED PARTNERSHIP EXECUTES SALE OF ETC.VENUES TO NEW YORK-BASED CONVENE

The firm led the sale of U.K.’s leading conference space provider to Convene, a hospitality company that now becomes the largest single supplier of premium meeting venues in the U.S. and UK 

MIAMI, FL – February 1, 2023 – Gencom, an international owner and developer of hospitality and residential properties, today announced the sale of etc.venues, an established leader in urban day conferencing with more than 500,000 square feet of space over 13 venues across London, Birmingham and Manchester and three in New York City. The buyer, Convene, is a hospitality company that designs, builds, and manages premium meeting, event, and flexible office spaces, offering solutions for innovative organizations. 

Four years ago, a Gencom-led partnership acquired an ownership stake in etc.venues, contributing capital to position the company for continued growth, serving as a catalyst for its expansion into the U.S. and navigating challenges presented by the global pandemic that has led to its successful exit from this investment. The completion of this transaction positions Convene as the largest single provider of premium meeting and event venues in the U.S. and UK. 

“Gencom’s investment in etc.venues represented a unique opportunity to execute an investment strategy that aligned with our focus on hospitality holdings and operations, while allowing us to gain a stake in the growing meetings and events space sector,” said Gencom Founder and Principal Karim Alibhai. “Despite setbacks created by the pandemic, this was a business sector that rebounded stronger as more companies sought flexible meeting and work spaces in a post-pandemic world. We felt this was the right time to execute this successful transaction given the buyer Convene’s position as an industry leader in meeting, event and flex office spaces, and future growth prospects.” 

The Gencom partnership will maintain a significant ownership stake in Convene and Mr. Alibhai will serve on its board of directors.

Founded more than 35 years ago, Gencom has grown to become one of the nation’s leading firms specializing in the development and management of luxury resort and residential properties, alongside full-service hospitality operating platforms. Today, the Gencom portfolio is comprised of nearly $7 billion in assets under management and includes 23 assets in operation or under development with over 8,500 hotel rooms around the world. Gencom’s portfolio also includes a distinct affiliated operating platform: Pyramid Global Hospitality, which oversees hotel property management and operations throughout the U.S. and Europe. 

About Gencom

Gencom is a U.S.-based investment firm that owns, operates and develops prized real estate around the world, with an emphasis on luxury hotels, resorts and branded residential properties; and which is also an active owner and investor in hospitality operating platforms. Gencom’s current real estate portfolio is comprised of some of the world’s most iconic hotels, resorts, and destinations which are amongst the leading properties in the industry with key operating partners such as Four Seasons, Ritz-Carlton, Rosewood, Auberge, Fairmont, Hyatt, Marriott and St. Regis. www.gencomgrp.com

About etc.venues

etc.venues operates nearly 500,000 square feet of space with over 15 venues across London, Birmingham, Manchester and New York. In our 30 years, we have hosted 300,000 events attended by more than 15 million delegates. Those numbers make etc.venues a leader in urban day conferencing. In fact, in Central London, we’re bigger than both Marriott and Hilton with 278 rooms. www.etcvenues.com

About Convene

Convene is a premium hospitality company that designs and operates meeting, event, flexible office, and membership spaces.  With a network of 38 locations across nine cities in the U.S. and UK, Convene thoughtfully combines beautiful yet intuitive design, fully-integrated technology services, and a warm and welcoming environment to create a turnkey solution for extraordinary meeting and work experiences. Founded in 2009 with the goal of bringing hospitality and lifestyle into traditional commercial real estate assets, Convene partners with the industry’s top landlords to deliver increased value to their assets and premium experiences to their tenants. The company counts Hudson’s Bay Company, Ares, and RXR Realty among its investors and has been named one of America’s 100 Most Promising Companies by Forbes and a Best Workplace by Inc.magazine, Fortune magazine, and Built In.  Learn more at https://convene.com/  

Gencom and Corten will acquire ownership stake in eight U.S. hotels comprising 1,400+ rooms and suites; Gencom affiliate Pyramid Global Hospitality will manage operations for the portfolio

MIAMI, FL, WILMINGTON, DE and PORTLAND, OR – December 15, 2022 – Affiliates of Gencom, an international owner and developer of hospitality and residential properties, and Corten, a Mid-Atlantic based private real estate investment fund manager, today announced the closing of a strategic venture with Provenance Hotels, an independent owner of boutique hotels. Under the venture, a Gencom-led partnership has acquired a 50 percent ownership stake in eight hotels across the United States, expanding the Miami-based firm’s portfolio by more than 1,400 rooms and suites. In a related transaction, Gencom affiliate Pyramid Global Hospitality, which oversees hotel property management and operations throughout the U.S. and Europe, has acquired the Provenance Hotels operating company and will add 12 full-service hotels to its national network of managed properties.

The venture between Gencom and Provenance represents the first transaction between these firms, each with celebrated histories in their respective segments of the market. It’s also the first time Gencom has partnered with Corten on a multi-asset deal.

• Founded more than 35 years ago, Gencom has grown to become one of the nation’s leading firms specializing in the development and management of luxury resort and residential properties, alongside full-service hospitality operating platforms. Today, the Gencom portfolio is comprised of nearly $7 billion in assets under management and includes 15 assets in operation or under development with over 7,000 hotel rooms around the world. Gencom’s portfolio also includes two distinct affiliated operating platforms: Pyramid Global Hospitality, and etc. venues.
• Founded in 2018, Corten’s partners have decades of principal real estate investment and management experience with a demonstrated track record in acquisitions, design/development/construction, and property/asset/fund management. Known for its creative capital solutions, the firm and its principals have invested in over 70 hotels, in excess of 15,000 keys, and over $4 billion of total capitalization.  
• Launched in 1985, Provenance Hotels is a premiere owner and operator of independently branded boutique hotels in destination cities across the U.S.

“Gencom’s venture with Provenance is a textbook example of our approach in identifying an opportunity and executing a creative investment strategy that complements our existing holdings,” explains Gencom’s Chief Investment Officer Alessandro Colantonio. “Gencom took a calculated risk entering this transaction during the height of the pandemic. While many were skeptical about the future of hospitality, we saw value in the Provenance portfolio’s real estate assets and believed these destinations would bounce back stronger. Today, Nashville, Seattle and New Orleans are among the top-performing hotel markets in the U.S.”

Brandon Flury, a principal leading Corten’s hospitality investments, added, “Our firm’s vertical expertise in this space allowed for an immediate philosophical alignment with Gencom and also facilitated an efficient execution of this highly nuanced opportunity. We are generally drawn to complex situations that require highly tailored capital solutions for joint venture partners like Gencom and Provenance, while at the same time meeting the return objectives of our institutional investors.”

Founder and Chairman of Provenance Gordon Sondland said, “We are excited about the opportunities this venture provides to our team members and guests, and we will be evaluating capital improvements to properties of the Fund. The Provenance management team will remain actively involved in the business, and we look forward to working with Gencom and Corten as we explore new areas for growth, both domestically and internationally. In particular, I plan to leverage the knowledge of the European market I gleaned during my time as U.S. Ambassador to the European Union.”

For Pyramid, the acquisition of Provenance Hotels’ operating company represents a strategic entry into new markets, according to Gencom Founder and Principal Karim Alibhai. “Pyramid Global Hospitality’s continued expansion in the hotel operations space is core to the strength of Gencom’s platform strategies. By acquiring Provenance Hotels and assuming third-party management of twelve additional properties with nearly 2,000 rooms, Pyramid now has a presence in several new markets that will present opportunities for future growth and support Gencom’s continued pursuit of opportunistic real estate assets and its overall growth initiatives.”

Eight hotels will be jointly owned by a Gencom-led partnership and Provenance: the Dossier, Sentinel, Hotel Lucia and Hotel Deluxe in Portland, Oregon; Old No. 77 Hotel & Chandlery in New Orleans; Hotel Max and Hotel Murano in Seattle; and Hotel Preston in Nashville. These properties are home to a combined 1,407 rooms and suites.  In addition to the eight hotels, Pyramid will manage four hotels owned by third parties which were previously operated by Provenance: Hotel Theodore in Seattle, Heathman Hotel and Woodlark Hotel in Portland, and The Bradley in Fort Wayne, Indiana. In total, Pyramid’s portfolio of managed properties will grow by 1,952 rooms and suites.

About Gencom

Gencom is a U.S.-based investment firm that owns, operates and develops prized real estate around the world, with an emphasis on luxury hotels, resorts and branded residential properties; and which is also an active owner and investor in hospitality operating platforms. Gencom’s current real estate portfolio is comprised of some of the world’s most iconic hotels, resorts, and destinations which are amongst the leading properties in the industry with key operating partners such as Four Seasons, Ritz-Carlton, Rosewood, Auberge, Fairmont, Hyatt, Marriott and St. Regis. www.gencomgrp.com

About Corten 

Corten Real Estate is a private investment manager that targets middle-market common and preferred equity (direct and joint venture), subordinated debt and whole loan investments in hospitality, multifamily, and office properties located throughout the U.S.  Corten’s sector expertise and ability to invest up and down the capital stack allow it to provide tailored funding solutions to operating partners/sponsors.  Corten is headquartered in Wilmington, DE, with satellite offices in the Philadelphia, PA and Chevy Chase, MD. www.cortenrealestate.com

About Provenance Hotels

Headquartered in Portland, Oregon, Provenance Hotels owns, develops and manages market-leading independent hotels. Imbued with intentional, deeply integrated art stories, these Conde Nast Reader’s Choice Award-winning hotels showcase trend-setting amenities, creative collaborations with local co-conspirators and innovative food & beverage operations while focusing on operational efficiency and profitability. The portfolio includes 12 properties totaling nearly 2,000 keys.www.provenancehotels.com

Karim Alibhai, the founder of the Miami-based development company Gencom, talks about trends in luxury development in Costa Rica, the Bahamas and beyond

BY SHIVANI VORA

ORIGINALLY PUBLISHED ON DECEMBER 12, 2022

Karim Alibhai, the founder and principal of the Miami-based development company Gencom, may have more than 20 significant residential projects to his name, but he has managed to be among the more under-the-radar developers in the industry. 

His ventures focus on resort settings globally and comprise primarily luxury branded residences. Examples include Ritz-Carlton residences in Philadelphia; Key Biscayne, Florida; and Bachelor Gulch, Colorado; as well as Rosewood Tucker’s Point and Fairmont Southampton in Bermuda.

Mr. Alibhai’s most recent project is Peninsula Papagayo, a 1,400-acre development in North Pacific Cost Rica that Gencom acquired in 2016 in partnership with the Cyprus-based investor Mohari Hospitality. The more than $1 billion master-planned community includes two hotel brands with residences attached—Four Seasons Hotels and Resorts and Andaz—and is in the middle of a major growth spurt. 

Mr. Alibhai, 58, who was born in Kenya, spoke to Mansion Global about the must-have amenities for any luxury development and why buyers from their 30s to 50s are now his company’s biggest customers.

Mansion Global: Peninsula Papagayo is known for its many amenities, and several more are in the works. Can you describe what currently exists and the ones still to debut?

Karim Alibhai: We have two beach clubs, three spas and several fitness centers with the latest equipment—they all also offer exercise classes. The development also has a marina that can accommodate superyachts, an 18-hole golf course designed by Arnold Palmer, more than 15 restaurants, a tennis center, a nature center and an adventure outpost with a zipline, a ropes course and a mountain bike center. 

I am especially proud of our Explorer’s Club, which offers customized experiences, both on and off the property. We have guides that can take you trekking in the rainforest, for example, or on a cultural tour, and naturalists who can take you birdwatching or animal trekking, even after dark. 

Upcoming, we’re working on a 20-acre sports park with water slides and a standing surf wave, a village around the marina with boutiques and restaurants, two more beach clubs and a wellness-oriented spa. 

MG: These days, what are some amenities that every luxury development in a resort destination must have?

KA: Definitely a sizable spa with numerous experiences like saunas, treatments and different wet areas. When people are in a resort destination, they want to escape to a spa. Also, since guests are captive and stay on property, you need a breadth of restaurants and bars. It’s not enough to have one signature restaurant because people get bored. 

MG: Who are your customers?

KA: In the beginning, Gencom’s buyers were mostly retirees. In the last few years, the tables have turned, and we see younger buyers in their 30s, 40s and 50s. These age groups have amassed a good deal of wealth from tech companies or other ventures and are seeking a lifestyle where they can enjoy their wealth. 

MG: How important are star architects to home buyers today? 

KA: Big name architects do resonate with buyers, but they are not a deciding factor. First and foremost, buyers must love the design of the residence, irrespective of who designed it. The flow and layout are also key. In a resort setting like Costa Rica, outdoor space is a big deal. People want large areas outside where they can spend time. 

MG: What’s your definition of luxury?

KA: Excellent service. You can have the best home in the most beautiful, highly amenitized development, but it means nothing if there isn’t service to match. That means the staff at the restaurants, beach clubs, spas and gyms. They should know all residents by name and their children as well. They need to be personal and aware of their preferences and aversions. 

MG: With respect to your developments, do you decide to invest based on the potential of the destination or of the project itself? 

KA: For me, the destination is the primary driver and then the project. Bermuda is an example. I first looked at it in 2015. It was an “it” country in the 1980s, but at the time I came in, it was on a decline in terms of the quality of the real estate and hotels. The affluent crowd had forgotten about Bermuda and were looking at other destinations to buy homes such as Turks and Caicos and Grand Cayman. But I believed that Bermuda had legs. It offers a perfect mix of Caribbean blue waters and Hamptons chic with its manicured lawns. 

Gencom decided to invest. We believed that we could add value to the destination by taking over the Rosewood and Fairmont properties and renovating them to a high standard. We have also streamlined their operations. Rosewood has since increased its revenues by more than 10 times and is one of my favorite places to visit with my four kids. 

[This interview has been edited for length and clarity]

Link to Mansion Global Article

Arquitectonica design reimagines the existing Hyatt Regency Miami site with a revitalized
world-class hotel and meeting space, residential apartments, new public green space, and
waterfront food and beverage experiences

 Improved Riverwalk will create a 480-foot-long pedestrian promenade 

 Miami – May 9, 2022 – Hyatt has teamed up with Miami-based luxury hospitality and residential developer, Gencom, with the goal of redeveloping Downtown Miami’s iconic Hyatt Regency Miami, improving access in and out of the urban core, and activating a key piece of Miami’s riverfront. The Hyatt and Gencom venture is proposing a privately funded redevelopment that will comprise a reimagined upscale Hyatt Regency hotel with 615 hotel rooms and premium meeting space, more than 1,500 residential apartments, and open-air public space along the Miami River. 

The proposed development seeks to amend and restate the ground lease that ushered in development of the existing Hyatt hotel in the early 1980s to include, without limitation, an extension of the lease renewal term from 45 to 99 years. This summer, Hyatt and Gencom will ask the City of Miami Commission to place a referendum on the November 2022 ballot asking voters to approve the revised ground lease and the proposed development. If approved by a majority of voters, construction on the Hyatt Regency Miami site is expected to begin in 2025. 

“The City of Miami had the foresight to designate this property for an upscale hotel and meeting complex that would establish Downtown Miami as a hub for tourism, business and major events. In the four decades since, Hyatt Regency Miami and the James L. Knight Center have helped fuel downtown’s rise as a thriving hospitality, residential and commercial district,” says Phil Keb, Executive Vice President of Development at Gencom. “Our team’s privately financed upgrades will help ensure the Hyatt hotel site remains a critical economic engine for decades to come, while unlocking benefits in the form of new public space along the Riverwalk, improved access, upscale housing, and increased revenue for the city.” 

Designed by Miami-based Arquitectonica, plans for the site include three towers offering residents and hotel guests panoramic views of Downtown Miami and Biscayne Bay. Towers one and two, rising 61-stories, will include 682 multifamily apartments, a 615-room Hyatt Regency with over 100,000 square feet of meeting space, and 264 serviced apartments. The towers will be linked at the top by a Skybridge featuring an upscale destination restaurant and lounge perched 700 feet over the city. Tower three, which is anticipated to include 860 residential apartments, will become one of the tallest buildings in South Florida. 

“The Downtown area where Hyatt Regency Miami is located represents a nexus between the Brickell Financial District and the Central Business District, and it sits at a vital entry point for many people entering the urban core,” adds Bernardo Fort Brescia of Arquitectonica. “Redeveloping this land is an opportunity to rethink the way people will access this site over 

future decades – by foot, bike, train, car, and boat. The new vision for this development will enhance the flow in and out of Downtown and create vital public space along the Miami River, which is growing in importance as more people take residence in the neighborhood.” 

“This proposed redevelopment represents a strategic opportunity to thoughtfully reinvest in the Downtown Miami community, which we have proudly been a part of since Hyatt Regency Miami opened its doors in 1982,” said Pete Sears, Americas group president, Hyatt. “With Gencom, we remain committed to pursuing redevelopment plans that add value to the Miami community and demonstrate care for our guests, colleagues and customers.” 

The development’s planned multifamily and hotel components will meet growing demand among new residents and visitors. Downtown Miami currently attracts six million visitors each year, more than 120,000 people now call the district home, and the neighborhood’s existing base of residential apartments is approximately 95 percent occupied, according to the Miami Downtown Development Authority. 

The three towers will sit atop a podium structure housing 190,000 square feet of Class A meeting space, representing a 50 percent expansion of the capacity currently available within the James L. Knight Center. The podium will include 12,000 square feet of space designated for food and beverage and retail uses, 1,100 parking spaces, as well as 20,000 square feet of coworking space. Outside, over 50,000 square feet of new public space will connect the Miami riverfront with family-friendly dining options located within the development. 

In reconfiguring the existing site, the venture plans to improve access in and out of the property. A large arrival and drop-off area within the development’s footprint will alleviate vehicular congestion on surrounding streets. The development will complete a key portion of the long-anticipated Miami Riverwalk, creating a riverfront promenade spanning more than 480 feet in length. These improvements will create seamless connectivity with Biscayne Bay and Bayfront Park to the east, as well as the Metromover’s Riverwalk station to the west. An improved pedestrian bridge will offer residents, guests, and meeting attendees direct, covered connectivity to the Metromover’s Knight Center Station. Four zones within the site will be designated for bike parking. Additionally, the team is exploring further activation of a ferry dock along the riverfront which is presently used by a water ferry service between Downtown Miami and Miami Beach. 

The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates. The term “Gencom” is used in this release for convenience to refer to Gencom and/or one or more of its affiliates. 

About Gencom 

Founded in 1987 by Karim Alibhai, Gencom is a U.S.-based investment firm that owns and operates prized real estate around the world, with an emphasis on luxury hotels, resorts and residential properties. The Gencom portfolio is valued at over $3 billion and comprises more than 3,500 hotel rooms. Iconic properties include the Four Seasons Papagayo in Costa Rica, Ritz Carlton Key Biscayne in Miami, Florida, and the Ritz Carlton Bachelor Gulch in Colorado. Headquartered in Miami, Gencom is fully integrated, with expertise in virtually every aspect of development, acquisition, financing, asset management and the sale of hospitality properties. Gencom has had success developing, purchasing and exiting single assets and hotel portfolios, as well as in creating, purchasing and growing hospitality platform investments throughout the United States, Caribbean and Europe. For more information about Gencom, please visit http://www.gencomgrp.com. 

About Hyatt Hotels Corporation 

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of December 31, 2021, the Company’s portfolio included more than 1,150 hotel and all-inclusive properties in 70 countries across six continents. The Company’s offering includes the Park Hyatt®, Miraval®, Grand Hyatt®, Alila®, Andaz®, The Unbound Collection by Hyatt®, Destination by HyattTM, Hyatt Regency®, Hyatt®, Hyatt ZivaTM, Hyatt ZilaraTM, Thompson Hotels®, Hyatt Centric®, Caption by Hyatt, JdV by HyattTM, Hyatt House®, Hyatt Place®, UrCove, and Hyatt Residence Club® brands, as well as resort and hotel brands under the AMRTM Collection, including Secrets® Resorts & Spas, Dreams® Resorts & Spas, Breathless Resorts & Spas®, Zoëtry® Wellness & Spa Resorts, Alua Hotels & Resorts®, and Sunscape® Resorts & Spas. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com. 

GUANACASTE, Costa Rica, Nov. 4, 2021 /PRNewswire/ — Peninsula Papagayo, the 1,400-acre private club and resort community located on Costa Rica’s north Pacific coast, today announced plans to build Nekajui, a Ritz-Carlton Reserve and Nekajui, a Ritz-Carlton Reserve Residence.

Designed for the most discerning eco-adventure leisure travelers, Nekajui, a Ritz-Carlton Reserve (pronounced NEK-ah-wee) is a new expression of luxury hospitality, welcoming guests on a highly personalized journey to one of the world’s most naturally beautiful and biodiverse destinations.

For collectors of rare trophy homes in exotic corners of the world, Nekajui, a Ritz-Carlton Reserve Residence, presents an extraordinary evolution of the hugely popular branded-residence concept.

About Nekajui, a Ritz-Carlton Reserve

• 107 guest rooms and suites on Pochote Bay; scheduled to open in 2024

Curated for adventurers seeking highly tailored and culturally immersive experiences, Nekajui converges on the human element that is intrinsic to true luxury.

“Service will be highly personalized,” says Simon Cooper, Gencom board member and lead advisor to Peninsula Papagayo. “With more staff and relatively fewer rooms, Nekajui has the privilege and uncommon opportunity to personally host guests, one-to-one.”

Growing demand from the most discerning leisure travelers is what motivated Gencom and Mohari Hospitality, co-owners of Peninsula Papagayo, to look beyond the gilded suites and familiar trappings of luxury. Cooper believes Nekajui will provide a much-needed antidote for the “been there, done that” syndrome. “It’s no longer just about the best guest rooms or facilities,” Cooper said, “it is about creating extraordinary experiences and lifetime memories.”

Inspired by Guanacaste’s classic haciendas, intimate public spaces bring together rich details from Spanish and Sabanero culture. Curated collections of original works by local artisans provide tactile touchpoints to explore the old and new. Lavish guest rooms are designed in a contemporary Costa Rican vernacular with spacious canopied patios and private plunge pools framing spectacular ocean and sunset views across the Gulf of Papagayo. Fittingly, the spa and fitness hub is accessed by a dramatic hanging bridge, inviting guests on an unforgettable path to lifelong wellness.

The name Nekajui comes from the language of the pre-Columbian Chorotegas, Guanacaste’s original inhabitants. The English translation, garden, inspired Nekajui’s singular open-air venues that welcome guests to step into a natural wonderland containing more species per square mile than any other country on the planet. A secluded beach house, reserved for hotel guests and residence owners, is situated steps from magical grotto pools and sea caves in Pochote Bay.

Other exclusive amenities include three signature Ritz-Carlton Reserve dining experiences, and Jean-Michel Cousteau’s Ambassadors of the Environment, which will offer an immersive gateway and uncommon access to 570 square miles of protected wildlands.

About Nekajui, a Ritz-Carlton Reserve Residence

• 36 rare villas and estate homes from over $3 million to over $13 million, located adjacent to the new Ritz-Carlton Reserve resort at Peninsula Papagayo, sharing access to all services and amenities
• Available by reservation starting November 2021

Located immediately adjacent to the new Ritz-Carlton Reserve, Nekajui’s exclusive residential enclave of two- to five-bedroom luxury villas and estate homes occupies the premier oceanfront property at Peninsula Papagayo. Secluded between two protected coves, a short walk from multiple beaches and golf, the site was handpicked for its unspoiled landscape and stunning natural setting. Construction of both the hotel and residences will commence early next year.

“Nekajui, a Ritz-Carlton Reserve Residence, was designed for collectors of trophy homes in exotic corners of the world,” said Donald McGregor of Miami-based Gencom, the developer and co-owner of Peninsula Papagayo.

Every aspect of the ownership experience will be curated and meticulously cared for by a dedicated Ritz-Carlton Reserve residential team. One of the many features of ownership will include hyper-personalized itineraries for each family member and houseguest, co-created alongside a dedicated team of credentialed local experts.

“Our clients receive all of the benefits of a boutique resort with enhanced outdoor living areas, individualized service, and privacy,” McGregor said. “More than ever, the top 0.1% is looking for an exotic sanctuary to escape boredom and spend quality time with friends and family.”

The unveiling of Nekajui follows a surge in demand from ultra-high net worth individuals for luxury-branded residences. Sales of Peninsula Papagayo’s luxury real estate have exceeded a record $200 million in 2021.

Nekajui’s rare villas and estate homes will be offered for sale under an exclusive priority reservation program starting in November 2021. Prices are expected to range from over $3 million to over $13 million. Two- to five-bedroom floorplans offer 2,200-6,300 square feet of luxe interior area. Additionally, most residences feature spacious outdoor living areas with canopied terraces and private pools. All homes will be delivered turnkey and fully furnished.

For more information, visit explorenekajui.com.

About Peninsula Papagayo
Situated on Costa Rica’s North Pacific coast in the province of Guanacaste, Peninsula Papagayo is Latin America’s ultimate coastal retreat offering an unparalleled closeness to nature and a lifetime of adventure in one of the most peaceful and biodiverse countries in the world. The community includes Four Seasons Resort Costa Rica at Peninsula Papagayo, Andaz Costa Rica Resort at Peninsula Papagayo, Bahias by Antoine Predock, the Clubhouse at Prieta Beach, the Arnold Palmer Signature Ocean Course at Peninsula Papagayo, Marina Papagayo, and an exclusive collection of oceanfront homes and villas. Peninsula Papagayo is located 30 minutes from Liberia International Airport, which offers more than 100 weekly flights seasonally from major cities in the U.S., Canada, the U.K., and across Central America. For more information, visit the website: https://peninsulapapagayo.com.

About Gencom
Founded in 1987 by Karim Alibhai, Gencom is a U.S.-based investment firm that owns and operates prized real estate around the world, with an emphasis on luxury hotels, resorts, and residential properties. Iconic properties include Four Seasons Resort Costa Rica at Peninsula Papagayo, The Ritz-Carlton Key Biscayne, Miami in Fla., The Ritz-Carlton, Bachelor Gulch in Colorado, and Rosewood Tucker’s Point in Bermuda. Headquartered in Miami, Gencom is fully integrated, with expertise in virtually every aspect of development, acquisition, financing, asset management, and the sale of hospitality properties. Gencom has had success developing, purchasing, and exiting single assets and hotel portfolios, as well as in creating, purchasing, and growing hospitality platform investments throughout the United States, Caribbean, and Europe. For more information about Gencom, please visit http://www.gencomgrp.com.

About Mohari Hospitality
Mohari Hospitality, founded in 2017 by entrepreneurial investor Mark Scheinberg, is a global investment company that engages in a broad range of real estate investment activities, with an emphasis on luxury hospitality in prime urban and resort markets. Mohari’s investments include equity and debt in both development and operating assets and Mohari invests both independently and with partners. Mohari’s existing investments include Peninsula Papagayo, a 2,200-acre sustainable master development, located in Costa Rica’s Guanacaste province and anchored by a Four Seasons luxury resort; The Ritz-Carlton Yacht Collection, a new ultra-luxury cruise line launching in 2021 and; Centro Canalejas, a group of seven adjoining historical buildings in the center of Madrid, featuring the first Four Seasons branded hotel in Spain; and the 205 room Waldorf Astoria, Miami which is to be the tallest tower south of Manhattan and is currently in pre-development residential sales. Mohari seeks to protect the cultural heritage and natural environments of all areas related to its projects and is committed to identifying and contributing to philanthropic projects in each location where it does business. Additional information can be found at moharihospitality.com.

Press Contact:
Danielle Finnegan
Director of Public Relations
Peninsula Papagayo
Guanacaste, Costa Rica
danielle.finnegan@peninsulapapagayo.com
+1 (954) 997-8665

NEKAJUI, A RITZ-CARLTON RESERVE RESIDENCE, IS NOT OWNED, DEVELOPED OR SOLD BY THE
RITZ-CARLTON HOTEL COMPANY, L.L.C. OR ITS AFFILIATES (“RITZ-CARLTON”). INVERSIONES HOTELERAS PLAYA POCHOTE, S.R.L. USES THE RITZ-CARLTON MARKS UNDER A LICENSE FROM RITZ-CARLTON, WHICH HAS NOT CONFIRMED THE ACCURACY OF ANY OF THE STATEMENTS OR REPRESENTATIONS MADE HEREIN.

SOURCE Peninsula Papagayo

RELATED LINKS

www.peninsulapapagayo.com

Hyatt Hotels Corp. and two local firms are planning to unveil a new design for a long-stalled redevelopment of the chain’s Regency hotel downtown and the city’s 40-year-old James L. Knight Center complex.

The concept, which will be presented for the first time Tuesday morning to a subcommittee of the Miami River Commission, would transform the convention center complex, completed in 1982, into a three-tower structure that would add contours to Miami’s growing skyline.

It would create a public promenade along the riverfront with green space and a terraced entrance to restaurants. Renderings provided to the Miami Herald show rounded, glassy facades stretching into the sky would replace the shorter, blockier concrete exterior.

One of a list of aging city-owned sites eyed for redevelopment for years, the property near the mouth of the Miami River at 400 SE Second Ave. currently has auditoriums, meeting space and a 612-room hotel run by Hyatt under a long-term lease executed in 1979. Under existing terms, Hyatt would in 2027 have the option of renewing the lease for another 45 years.

Hyatt previously presented plans in 2017 and 2018, though the matter never made it to the ballot. Now, Hyatt has tapped a Miami-based team including developer Gencom and Arquitectonica to design a new vision for a complete overhaul of the property. The team will ask the city to extend the lease for another 99 years.

The financial terms of the proposal are still being negotiated and land appraisals are not yet complete, according to Miami City Manager Art Noriega’s administration. The city commission is not expected to consider a complete proposal until late June. Any deal would need voter approval under a city law that requires a referendum for long-term leases of city-owned waterfront property. The developers plan to ask commissioners to place the question on the November ballot.

For now, the development team is focused on introducing the new design concept in hopes of gaining traction with City Hall and other civic leaders.

“We would hope the architecture of the site would become a postcard shot of Miami,” said Phil Keb, executive vice president of Gencom.

The plan calls for a complex with 615 hotel rooms, more than 1,500 market-rate apartments, revamped meeting space and a transformed public riverwalk. Two 61-story towers would include apartments, hotel rooms and extended-stay units, and a third rising more than 1,000 feet would hold 860 residential apartments. A skybridge with a restaurant would connect the two shorter towers, with a view of the city from 700 feet off the ground.

The towers would rise above a massive pedestal that would hold about 190,000 square feet of meeting space, replacing the current convention space and the 4,500-seat auditorium that has hosted graduation ceremonies, concerts and, in the early days, University of Miami basketball games.

The ground-floor structure would also conceal a large circular driveway with multiple lanes for arrivals and drop-offs — a feature designers say will prevent long car queues from spilling out into streets already choked with traffic.

“We had to deal with the reality of cars,” said Bernardo Fort-Brescia, Arquitectonica co-founder, in an interview with the Herald. “The drop-off became a priority.”

Fort-Brescia and fellow architect Alejandro Gonzalez said they sought to give the space a “sense of arrival” that would at once be functional for cars and welcoming for pedestrians walking from downtown or getting off the Metromover.

The plan’s potential to upgrade the ground-level experience on the riverfront and even on the street-side along Southeast Fourth Street is appealing to Neal Schafers, head of urban planning for the Downtown Development Authority. He said with outdoor dining and grassy areas planned for the riverfront and new drop-off, the concept has promise. “From what I’ve seen in the proposed design, it would be fixing issues on one side with riverside activation and hopefully fixing ingress and egress issues on the north side,” he said.

Last week, the development team presented the vision to Commissioner Ken Russell, whose district includes the site. He told the Herald he was pleased to see green space and a more inviting riverwalk concept in the designs. He said the proposal is an upgrade from the last designs presented to the commission about four years ago.

One aspect of the plan expected to spark more conversation: All of the apartments are planned to be leased at market rates, which would mean more sky-high rents in downtown Miami. In a city facing a housing affordability crisis that continues to get worse, Russell and other commissioners could push the developers to rent out some units below market rates.

“This project does not address our affordable housing crisis in any way, so we need to see how this fits in with our goals,” Russell said.

Keb, the Gencom executive, said his team is anticipating the housing discussion.

“Whether that will be onsite or at other locations, yes, there is an affordable or workforce housing component that will be part of the overall project,” he said.

The design has already incorporated some feedback that Russell gave four years ago, including the emphasis on beautifying the riverfront and creating an inviting space for residents and tourists. The development team’s approach to presenting the concept is different this time, said James Francque, Hyatt’s global head of transactions.

“Before, it was Hyatt taking the lead in terms of speaking with city commissioners, speaking with the real estate department of the city of Miami,” Francque said. “Ultimately, we concluded that we needed to step back and switch this up. We selected our local partners before we started having these conversations.”

If a complete redevelopment is not endorsed by either the commission or the voters, Hyatt will still have rights to operate on the site for another 50 years. Francque said at that point, the conversation could shift to upgrading existing facilities, but his team feels a broader redevelopment is a better fit for downtown.

“From my perspective it’s very feasible to do it,” Franque said. “Everyone seems to be working in the same direction.”

Read more at: https://www.miamiherald.com/news/local/community/miami-dade/article261245017.html#storylink=cpy