Category: Featured News

GENCOM AFFILIATE ACQUIRES COSTA RICA’S FAMED PENINSULA PAPAGAYO, INCLUDING FOUR SEASONS PAPAGAYO RESORT

Plans call for significant renovations and upgrades to award-winning luxury property, as well as expansion of real estate product offering

Project to create local jobs, boost international tourism, and support surrounding communities in Guanacaste province

Papagayo Four Seasons

August 17, 2016

MIAMI – Gencom, a leading U.S.-based international luxury hospitality and residential real estate investment and development firm, today announced the acquisition of Peninsula Papagayo Resort by a Gencom affiliate. The ownership acquired the 1,400-acre luxury master development in Costa Rica’s famed Guanacaste province for an undisclosed sum.

Anchored by the award-winning, 182-key Four Seasons Papagayo, Peninsula Papagayo includes such luxury amenities as an 18-hole Arnold Palmer-designed golf course and clubhouse, the 180-slip Marina Papagayo, and the 38,000 square foot Prieta Beach Club – all of which are recognized for offering best-in-class service via the more than 700 employees. The Four Seasons Papagayo is ranked as the only Forbes Travel Guide Five-Star Resort in Central and South America. The Guanacaste province, internationally noted as Costa Rica’s premier tourism destination, is located in the country’s northwestern region along the Pacific Ocean, bordering Nicaragua to the north.

The ownership is partnering with Costa Rican developer Sinergo Development Group to carry out the renovation and reinvigoration of the existing assets, including the Four Seasons Papagayo, and also to assist in the development of future phases. The design team also includes local architecture firm Zurcher Arquitectos and New York-based luxury interior design firm Meyer Davis. Plans for future development include branded and unbranded luxury residential real estate along with other complementary hotel brands.

“We are excited by the immediate and long-term benefits that this acquisition and further investments within the peninsula will bring to Costa Rica and the Guanacaste province, including job creation, increased tourism, and heightened global visibility for Peninsula Papagayo as a national jewel,” said Karim Alibhai, principal of Gencom. “This acquisition is part of our continued strategic response to an increased demand from elite international travelers for luxury, experience-driven vacations in prime destinations.”

As part of its commitment to the community, the group plans to invest in and continue the work of Creciendo Juntos (“Growing Together”), a local nonprofit organization that supports local high and elementary schools with programs including educational initiatives and preventative health care.

“As a native Costa Rican, I am excited by the reinvestment in Peninsula Papagayo, a vital pillar of Costa Rican tourism,” said Manuel Ardon, chief operating officer of Peninsula Papagayo. “Thanks to this acquisition, the phenomenal infrastructure of Peninsula Papagayo, which was developed in one of the world’s most spectacular geographic landscapes, will set a new standard among the other real estate and hospitality master developments in Central America, the Caribbean, and Mexico.”

The seller was represented by REH Capital Partners and the Algon Group in a strategic alliance as co-advisors.

About Gencom

Founded in 1987 by Karim Alibhai, Gencom is one of the nation’s leading domestic and international investment and development firms specializing in the hospitality and luxury hospitality related residential real estate sectors. Headquartered in Miami, Gencom is fully integrated and highly diversified, with expertise in virtually every aspect of development, acquisition, financing, asset management and sales of hospitality properties. Gencom has had success not only in developing, purchasing and exiting single assets and hotel portfolios, it also has been successful in creating, purchasing and growing hospitality platform investments, throughout the United States, Caribbean and Europe. For more information about Gencom, please visit https://gencomgrp.com

About REH Capital Partners

REH Capital Partners, LLC, is a national investment and advisory services firm primarily focused on the real estate and hospitality industries. The firm is led by Frank Nardozza, its founder, and a senior executive team dedicated to fulfilling the diverse needs of clients requiring seasoned real estate and hospitality know-how, personalized attention, and highly tailored business solutions. REH Capital Partners has headquarters in Fort Lauderdale, Fla., and offices in Los Angeles. More information is available at www.rehcp.com

About Algon Group

Algon Group is a specialized financial advisory firm that provides sophisticated advisory services in M&A, financing and restructuring transactions. For more information about Algon Group, please visit www.algongroup.com

About Sinergo Development Group
Sinergo Development Group is a development and asset management firm specialized in the hospitality and real estate sectors in Costa Rica and the Caribbean. With headquarters in San Jose, Costa Rica, the company is noted for its development of the Four Seasons Papagayo among other award-winning projects.

Editor’s Note: Photographs and interviews are available upon request.

Contact:

For Gencom inquiries:

Gencom
2700 Tigertail Avenue
Coconut Grove, FL, 33133
Alessandro E. Colantonio
SVP – Acquisitions & Development
305.416.6870
[email protected]

Donald McGregor
Associate
305.416.4573
[email protected]

Media Contacts:

Kris Conesa or Julia Wakefield
Roar Media
[email protected] or [email protected]
(305) 403-2080
www.RoarMedia.com

Benchmark Hospitality International and Gemstone Hotels & Resorts, a Gencom affiliate, both recognized global leaders in the management and marketing of resorts, hotels and conference centers, announce that Benchmark and Gemstone have joined together to create a portfolio of 58 unique and distinctive properties with 10,000 staff members across the globe.

“This merger was a natural fit,” explains Benchmark Hospitality International CEO Alex Cabañas. “Not only do we share a similar focus on unique and independent properties, but our organizational cultures and values align extremely well.” Mr. Cabañas continues with, “We felt it was critical to share this exciting news with our clients and employees before the press release went public.” Cabañas concludes with, “Though this has not been common in other industry mergers, for us it was the right thing to do to ensure the change and transition was thoroughly embraced by our ownership clients and team members.”

Greg Champion, Benchmark’s president & COO emphasizes that, “The merger of these two great organizations creates not only incredible synergies and opportunities for the growth and expansion of the combined companies, but also provides wonderful prospects and pathways for the development and advancement for our much-valued customers, employees and team members.”

“Passion, servant leadership and an entrepreneurial spirit will remain at the foundation of our new combined company,” says Jeff McIntyre, Gemstone’s principal partner. “Together, we will combine efforts to offer best-in-class services for our partners.”

In the newly-merged company, Burt Cabañas, Benchmark Hospitality’s founder and chairman, and Gencom, led by Karim Alibhai, will be the principal shareholders. Burt Cabañas will continue in his role of chairman of the combined companies, the remaining partners of both companies will serve in the following roles with the new entity; Alex Cabañas will serve as chief executive officer, and Jeff McIntyre and Greg Champion will serve as co-presidents and co-chief operating officers. Thomas Prins, a Gemstone partner, will take on the new role of managing director real estate investments.

Already being described as an epic merger of two legendary hotel companies into one extraordinary portfolio, the formal coming together represents a response to a market that is rapidly moving towards independent and soft brands, with a strategic focus on experience-driven, destination travel. The combined company will further this focus and apply its unique entrepreneurial management style to the expanded portfolio of independently-branded properties, while also deploying soft brands, such as Curio, Autograph Collection, Tribute, Preferred Hotels & Resorts, Leading Hotels of the World, Historic Hotels of the World and IACC. Further growth is on the agenda for the combined company with projects already in the pipeline. “The platform that is being created is robust and in part designed for well-measured growth,” explained Thomas Prins, “something we will take advantage of while at the same time creating great case studies at each of our existing properties.”

Most importantly, the merger represents an opportunity to combine the collective resources and experience of both companies to better serve ownership partners, customers and the independent property segment of the hospitality industry. The new company has already begun to integrate the best systems and resources from both organizations, using a well-engineered plan to create maximum efficiencies, while other aspects of consolidation will occur over time.
Benchmark and Gemstone are currently engaged in a comprehensive strategic envisioning and branding process to determine the new brand pillars, signature and brand positioning for the consolidated company, and plans to roll this out in the near future. Headquarters will be located in Houston, Texas with satellite offices in Park City, Utah and Miami, Florida.

“I am so pleased with this new partnership and the expansion of our company,” said Burt Cabañas. “This merger is in line with our overall strategic growth plans to double the size of our company within five years. With the merger of these two incredible organizations, we’re enthusiastically on our way toward achieving this significant goal, which will ultimately better serve the interests of our property owners and also create additional opportunities for our team members.”

“Gencom is very excited about being a part of this dynamic enterprise,” said Karim Alibhai. “This is a merger of two highly sought after companies with superior management capabilities. The management team combined has a wealth of hospitality experience, transcending over all classes of hotels, resorts and conference centers with strong performance through multiple business cycles.”

About Benchmark Hospitality International

Benchmark Hospitality International® is a recognized global leader in the management and marketing of resorts, hotels and conference centers. The company”s two distinctive portfolios of properties, Benchmark Resorts & Hotels® and Personal Luxury Resorts & Hotels®, represent the finest in guest-dedicated hospitality in unique destinations across the United States, in the Caribbean and Japan. As a founding member of the International Association of Conference Centers, Benchmark Conference Centers® maintain the highest standards for certification in meeting excellence. Benchmark Hospitality was launched in 1980 as an independent company and today operates worldwide from offices in The Woodlands (Houston), Texas, and regional offices in New Jersey, Washington State, Japan and Chile. For additional company information visit www.benchmarkresortsandhotels.com/development.

An investment trust has acquired a majority interest in the Ritz-Carlton Fort Lauderdale.

Real estate investment trust Carey Watermark Investors Inc. bought the stake in a joint venture with RCFL Holdco LLC, the New York-based company said this week. The price was not disclosed.

RCFL is an affiliate of Gencom, a Miami-based real estate and investment and development firm. Another Gemcom affiliate, RCFL Investor LLC, had purchased the Fort Lauderdale hotel in July 2013 for $65.7 million, according to Broward County property records.

The 24-story, 166-room upscale resort at 1 N. Fort Lauderdale Beach Blvd. is undergoing a nearly $9 million renovation that will result in a new restaurant and indoor/outdoor bar, spa enhancements including new steam and sauna rooms and two new stores.

The Fort Lauderdale hotel deal is Carey Watermark’s third joint venture purchase with the Gencom family of companies and follows its acquisition of The Ritz-Carlton, Key Biscayne and The Ritz-Carlton, Philadelphia.

The three transactions represent an investment of more than $500 million, Carey Watermark said.

NEW YORK, June 1, 2015 /PRNewswire/ — Carey Watermark Investors Incorporated (CWI 1) and Carey Watermark Investors 2 Incorporated (CWI 2), two non-traded real estate investment trusts (REITs) focused on investing in lodging and lodging-related properties, acquired a majority interest in The Ritz-Carlton Key Biscayne, Miami (The Ritz-Carlton) in a joint venture with an affiliate of GB Key Biscayne Holdings, LLC, the original developer of the property. The property includes 302 resort guestrooms and 188 condo-hotel units (174 of which currently participate in the resort rental program).

Key Facts

• Unique Key Biscayne location with high barriers to entry: The property is located on Key Biscayne, an island approximately three miles off of the coast of Miami and 16 miles from Miami International Airport. The resort sits on 17 acres of oceanfront land. Due to limited area and significant development limitations on the island, it would be very challenging to develop a comparable property on Key Biscayne.
• High quality resort destination: Key Biscayne is firmly established as a world-class resort community offering beautiful nature preserves, shopping villages, golden beaches and some of the most exclusive and expensive residential homes in South Florida. It hosts an international tennis center (home to the Miami Open tennis tournament) and a championship golf course, and provides the perfect location for numerous water sports and fishing. The adjacent island, Virginia Key, is home to the Miami Seaquarium.
• Planned property enhancements: The resort, developed in 2001, has recently completed a full renovation of the lobby, two food & beverage outlets and spa. An additional renovation of the guestrooms is planned for 2016—with all of the rooms and condo units scheduled to receive a full replacement of all soft goods, along with various bathroom upgrades, and a significant repositioning of its signature restaurant, Cioppino.
• Strong Miami market: In 2014, Miami was the fourth highest U.S. market in terms of overall RevPAR, after New York, Oahu and San Francisco. According to PKF, the Miami lodging market continues to show strength with projected annual RevPAR growth (revenues per available room) in the 5% range over the next several years.
• Management: The hotel will continue to be managed by The Ritz-Carlton Hotel Company, L.L.C., an affiliate of Marriott International.
• Marriott brand affiliation: As a member of the Marriott International family, The Ritz-Carlton Key Biscayne benefits from its luxury branding and Marriott’s management platform affiliation, including access to its global distribution system and The Ritz-Carlton Rewards program.
• Property and amenities:
  • 302 resort guestrooms, including 38 suites and 188 condo-hotel units, of which 174 units participate in the resort rental program
  • 20,000 square feet of interior meeting and banquet space
  • 30,000 square feet of exterior function space, including two pool decks
  • Recently renovated 20,000 square foot spa with 21 treatment rooms
  • Full-service fitness center
  • Tennis center with 10 clay courts and one hard court
  • Two pools
  • Five primary food & beverage outlets

Management Commentary

Michael Medzigian, Chief Executive Officer of the Carey Watermark Investors investment programs: “The joint venture investment in The Ritz-Carlton Key Biscayne property allowed us to add a AAA Four Diamond destination resort in a location with high barriers to entry to the CWI 1 and CWI 2 portfolios. Working with GB Key Biscayne Holdings, we were able to recapitalize the asset to allow for ongoing renovations and secure attractive current risk adjusted returns with the potential for longer term incremental value. The combination of a high quality asset in an unmatched location with the strength of The Ritz-Carlton brand represented a unique and attractive investment opportunity.”

Carey Watermark Investors

CWI 1 and CWI 2 are publicly registered REITs that were formed to make investments primarily in the lodging and lodging-related sectors. Affiliates of W. P. Carey Inc. and Watermark Capital Partners advise CWI 1 and CWI 2 and manage their overall portfolios. www.careywatermark.com, www.careywatermark2.com

This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Medzigian, and statements regarding RevPAR growth projects, are examples of forward-looking statements. A number of factors could cause CWI 1’s and/or CWI 2’s actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for hotels; interest rate levels; the availability of financing; other risks associated with the acquisition and ownership of hotels and risks related to CWI 2’s offering of shares. For further information on factors that could impact either CWI 1 or CWI 2, reference is made to their respective filings with the Securities and Exchange Commission. Statements about past performance, which are presented for informational purposes only, are not a guarantee of future results.

Company contact:
Kristina McMenamin
W. P. Carey Inc.
212-492-8995
[email protected]

Press contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
[email protected]

NEW YORK, May 19, 2015 /PRNewswire/ — Carey Watermark Investors Incorporated (CWI 1) announced that it has acquired a majority interest in the 299-room Ritz-Carlton Philadelphia (The Ritz-Carlton) in a joint venture with Philadelphia Hospitality Partners, L.P., the owner of the property.

Key Facts

• Historic property in premier Center City, Philadelphia location: Originally built between 1904 and 1908 as The Girard Trust Company, the rotunda and adjacent eight-story tower of The Ritz-Carlton Philadelphia were designed by McKim Mead and White; the adjoining tower was added in 1923. The building was expanded from 8 stories to a height of 30 stories in 1931 and converted to The Ritz-Carlton in 2000. Located within the central business district, the landmark hotel is adjacent to City Hall and within walking distance of the recently completed $50 million Dilworth Plaza fountain and skating rink, as well as fine dining and upscale shopping.
• Improving Philadelphia hotel market: One of the top 25 hotel markets in the United States, Philadelphia benefits from a well-diversified economic base with major sectors such as healthcare, education, legal, insurance and technology that serve as cornerstones for the market’s strength and vitality. According to PKF Hospitality Research, hotel occupancy in Center City Philadelphia hit 76% in 2014, the highest annual occupancy since 1949. The city is in the midst of a major revitalization with over 50 major Center City developments in progress representing over $4.7 billion in total investment. Some other notable, recent projects include the 2011 expansion of the PennsylvaniaConvention Center (and subsequent management change in late-2013), expansions at the University of Pennsylvania and the Jefferson Health System and large-scale redevelopment projects of historic buildings located throughout the city.
• $21.3 million hotel renovation plan: A $21.3 million comprehensive renovation of the entire property is planned for Q3 2015 through Q2 2016. All rooms will receive a full replacement of soft and case goods, along with bathroom upgrades. The lobby, meeting space, ballroom, corridors, club lounge and food & beverage outlets will all be renovated as well.
• Food & beverage reconceptualization: The venture expects to enter into an agreement with a third-party food & beverage operator to operate its newly-renovated and re-concepted restaurant and lounge.
• Strong Marriott brand affiliation: The hotel will continue to be managed by The Ritz-Carlton Hotel Company, L.L.C., an affiliate of Marriott International. As a member of the Marriott International family, The Ritz-Carlton Philadelphia benefits from its luxury branding and Marriott’s management platform affiliation, including access to its global distribution system and The Ritz-Carlton Rewards program.
• Amenities:
  • 299 guestrooms
  • 26,000 square feet of meeting and banquet space, including a 6,100 square-foot grand ballroom
  • Richel D’Ambra Spa & Salon
  • Fitness center
  • Business center
  • Two food & beverage outlets

Management Commentary

Michael Medzigian, President & Chief Executive Officer of Carey Watermark Investors: “The joint venture investment in The Ritz-Carlton Philadelphia allowed us to add a high quality landmark hotel to the Carey Watermark Investors portfolio. We are excited about the opportunity to recapitalize an exceptional asset in order to fund an extensive renovation and position the property competitively within the luxury sector of the market. The acquisition of an institutional-grade, luxury hotel in an established city-center location, in combination with the strength of The Ritz-Carlton brand, represents a unique and attractive opportunity as we continue to build out our portfolio.”

Carey Watermark Investors

Carey Watermark Investors Incorporated is a publicly registered real estate investment trust (REIT) that was formed to make investments primarily in the lodging and lodging-related sectors. Affiliates of W. P. Carey Inc. and Watermark Capital Partners advise CWI 1 and manage its overall portfolio. www.careywatermark.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Medzigian are examples of forward looking statements. A number of factors could cause actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the risks related to the general economic climate, the supply of and demand for hotels, interest rate levels, the availability of financing, and other risks associated with the acquisition and ownership of hotels. For further information on factors that could impact CWI 1, reference is made to its filings with the Securities and Exchange Commission. Statements about past performance, which are presented for informational purposes only, are not a guarantee of future results.

Company contact:

Kristina McMenamin
W. P. Carey Inc.
212-492-8995
[email protected]

Press contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
[email protected]

The Ritz-Carlton, Bachelor Gulch has majestically held its place on the mountain in Beaver Creek for several years. Rustic, elegant design makes this larger-than-life lodge feel at home on the Colorado mountainside, but recent renovations have taken this AAA four-diamond property to the next level. Chic interior design updates, new lounge spaces and innovative fine dining abound at the new property.

Immediately upon entering the resort, return guests will notice the changes that were made to this classic property. Lush blue furniture and open spaces now occupy the main lounge area right off the slopes—a far more contemporary twist to the mountain property—the Ritz-blue furniture and accents lighten the space.

Off the newly re-decorated main living room is Buffalos restaurant, which serves breakfast, lunch and dinner. The expanded space which used to house a bar and ski-in, ski-out deli, is now ultra-chic with a backlit bar and comfortable seating to take in the mountain view or devour a scrumptious snack. Specializing in local, farm-sourced ingredients, everything from the food to local craft beers at the Bison Tartar restaurant are perfectly enjoyed in this new space. Also, rich interiors and pops of color are a stunning addition Spago’s dining room.

The Club Level has also received a facelift, bright rooms and interiors spaces lighten the entire floor.  A move away from the dark woods and rustic interiors, the lighter spaces feel airy and complement the mountainside views of the pool and lift below. From the Club Level Lounge, guests can see the surrounding valley while enjoying one of many food services during the day or relaxing with a glass of wine after a long day of skiing, snowshoeing, hiking, or mountain biking.

One of the most exciting additions to The Ritz-Carlton, Bachelor Gulch is the Bachelor’s Lounge. Previously the kid’s club, the venue offers both inside and outside spaces where live music and a cigar bar meld with creative cocktails to create a unique adults-only atmosphere. Of the cocktail offerings, The Vaportini—which comes in several flavors and styles—essentially vaporizes the alcohol that is consumed through a glass straw. A bit of a buzz without any of the calories, the fanciful take on classic beverages is an entertaining end to an evening. Guests can also enjoy an imported cigar on the outdoor heated patio or sip on a glass of wine chosen by the sommelier in the crisp mountain air.

From the fireside s’mores to a sprawling spa complete with underground grotto, outdoor pool and Jacuzzis to its own ski lift, The Ritz-Carlton Bachelor Gulch is decidedly the King of the Mountain. World-renowned service coupled with this renewed mountain property make for an excellent escape in Colorado.