Gencom and its affiliates continue to expand their investment and footprint in the island of Bermuda, where the firm acquired the Fairmont Southampton resort in 2019 and also owns the Rosewood Bermuda acquired in 2017.
The financing secured will fund a comprehensive renovation and redevelopment of the iconic Fairmont Southampton resort.
MIAMI, FL, September 23, 2024 – Gencom, an international owner, developer and manager of prized real estate, announced today that it has closed on a $550 million recapitalization of the Fairmont Southampton resort in Bermuda, funding a major redevelopment and expansion of the 593-key resort. With this announcement and commencement of the redevelopment, Gencom solidifies its position as the largest hospitality owner and developer on the island of Bermuda. Famous for its pink-sand beaches and accessibility to major North American cities such as Miami, New York City, Toronto and Boston, the destination ranked as the #1 location to travel to by Condé Nast Traveler’s Readers’ Choice Awards 2023.
“With this latest transaction, we are thrilled to strengthen our investment in Bermuda’s vital tourism and hospitality sector, as the country continues to rank as a leading tourism destination,” said Karim Alibhai, Founder and Principal of Gencom. “The extensive redevelopment of Fairmont Southampton reflects our deep commitment to the island’s long- term success. These enhancements will elevate the resort to a premier luxury destination, not just in Bermuda but across the broader Caribbean hospitality market.”
The extensive redevelopment underway at Fairmont Southampton will modernize the historic resort, featuring a complete transformation of all guestrooms with luxurious furnishings and elegant decor. The revamp will also include upgrades to the hotel’s expansive lobby and reception area as well as the meeting spaces and ballrooms, which will position the hotel and the island to welcome high-profile events and celebrations. The restaurant spaces will undergo a makeover to unveil sophisticated settings and elevated menu offerings. Fairmont’s Beach Club is being reimagined as a signature amenity that will include a new oceanside beach grill and lavish resort-style pool with breathtaking views of the beachfront. The redevelopment will additionally include a multi-phased residential program with luxury residences branded under the Fairmont flag. The resort is slated to reopen in early 2026, following the comprehensive renovation.
As noted by Omer Acar, Chief Executive Officer for Fairmont Hotels & Resorts, “We are thrilled to mark another notable step forward toward the reopening of Fairmont Southampton. This hotel is not only of significance to the island of Bermuda, but it is also a much-loved member of the Fairmont family. We are eager to reopen the doors and to get back to what we do best, delivering special experiences for our guests, fostering a strong team, and creating rewarding
opportunities for career-building and growth for Bermudians. It is an exciting time, and we are delighted to be working closely with our valued partners at Gencom in re-imagining this iconic property.”
Bermuda’s Minister of Tourism, the Honourable Owen Darrell, JP, said, “This is exciting news and represents a resounding vote of confidence in Bermuda and the potential of our tourism industry.”
Financing for the Fairmont Southampton transaction was provided by key institutional lenders, led by Starwood Property Trust and Clarien Bank.
“We are excited to be working with leading institutional lending partners on this venture and to reach this significant milestone with our Bermuda holdings,” said Alessandro Colantonio, Chief Investment Officer at Gencom. “As we continue to forge ahead, we look forward to delivering this world-class destination resort that will benefit the Bermuda tourism industry and local economy for decades to come.”
Lotus Capital Partners, led by Faisal Ashraf, served as capital markets advisor to Gencom on this deal.
“Clarien is proud to play a pivotal role in the financing of this transformative project, which will revitalize one of Bermuda’s most iconic resorts and strengthen the island’s position as a premier destination,” said Simon Van de Weg, Chief Banking Officer at Clarien Bank. “This underscores our commitment to supporting the growth of Bermuda’s economy through innovative financial solutions that meet the evolving needs of the Bermuda market.”
This announcement and closing follows the firm’s successful track record of acquiring, redeveloping and expanding significant luxury, mixed-use resorts including Costa Rica’s Peninsula Papagayo, which includes a Four Seasons resort, Andaz by Hyatt resort and a Ritz- Carlton Reserve that is currently under construction.
In May 2024, Gencom also announced the successful refinancing of the Rosewood Bermuda, an ultra-luxury hotel boasting 88 keys with sweeping views of the Atlantic Ocean, Castle Harbour and Harrington Sound. The hotel’s amenities feature a 2,700-square-foot ballroom, a 12,000-square-foot luxury spa with eight treatment rooms and a reflecting pool, as well as several more dining options. The five-star resort is located in Tucker’s Point, spanning 240 waterfront acres and considered the longest private beach on the island. The financing was originated by Blackstone Mortgage Trust, Inc. (NYSE: BXMT) and KSL Capital Partners, LLC for an undisclosed amount and terms. Gencom is currently leading a $17 million renovation of the Rosewood resort that includes improvements to the golf course and clubhouse, the Beach Club and the addition of new amenities and food & beverage options.
Gencom’s Bermuda assets are part of the firm’s illustrious branded hotel portfolio, which includes destinations such as The Ritz-Carlton Bachelor Gulch; The Ritz-Carlton Key Biscayne; The Ritz-Carlton Philadelphia; The St. Regis Chicago; Four Seasons Costa Rica; Nekajui Ritz-Carlton Reserve currently under construction; and other five-star flags under Auberge, Hyatt, and more. Today, the Gencom portfolio is comprised of nearly $8 billion in assets under management and under development and includes 24 owned assets with over 7,000 hotel rooms around the world.
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 24 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 Starwood Property Trust
Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of June 30, 2024, the Company has successfully deployed over $98 billion of capital since inception and manages a portfolio of $26 billion across debt and equity investments. Starwood Property Trust’s investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com.
About Clarien Bank
Clarien Bank Limited (“Clarien Bank”) provides personal, wealth management and corporate banking, to clients in Bermuda and internationally. Clarien Bank is one of the largest independent integrated financial services organisations in Bermuda and through subsidiary companies is licensed to conduct banking, investment, corporate services and trust business by the Bermuda Monetary Authority.
Media Contact for Gencom:
Schwartz Media Strategies
Yudi Fernandez Kim – yudi@schwartz-media.com; (305) 725-8262 Jen Le – jen@schwartz-media.com; (239) 860-7379