An affiliate of Miami-based Gencom, a global operator and developer of hospitality properties, secured a $550 million loan to redevelop Bermuda's largest resort.

The financing for the 593-key Fairmont Southampton was led by Starwood Property Trust and Bermuda-based Clarien Bank. The resort, located at 101 South Shore Road, was originally built in 1972 and closed in 2020 as a result of the pandemic. The hotel remained closed as redevelopment plans began to take shape, and the resort is expected to reopen early in 2026, according to a statement from 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,” said Karim Alibhai, principal of Gencom, in the statement.

Redevelopment plans include adding a residential component with Fairmont-branded luxury residences over several phases, according to the statement. More details on the residential addition were not available since the plans are still being finalized, according to a spokesperson for Gencom.

Other renovation plans include upgrading all the guestrooms, hotel lobby and reception area, meeting spaces and ballrooms to better position the hotel for high-profile events. The resort’s beach club will also be revamped with an oceanside beach grill and resort-style pool with beachfront views.

Gencom entered the Bermuda hospitality market in 2017 after an affiliate acquired the Rosewood Bermuda. In 2019, the company expanded its presence on the island with its purchase of the Fairmont Southampton for an undisclosed sum, making Gencom the largest hospitality owner in Bermuda.

In May, Gencom refinanced the Rosewood Bermuda, an ultra-luxury hotel with 88 keys. Terms of the financing, originated by Blackstone Mortgage Trust and KSL Capital Partners, were not disclosed. Gencom is currently spending $17 million to renovate Rosewood Bermuda, according to the statement.

In the United States, Gencom kicked off the year by taking back its majority stake in Miami’s Ritz-Carlton Key Biscayne as part of a $400 million deal with plans to launch a $100 million renovation. And this month, the company entered the Manhattan market, closing on its acquisition of the 587-key Thompson Central Park Hotel.

Gencom’s portfolio includes nearly $8 billion in assets under management, with 24 owned assets and over 7,000 hotel rooms globally.

Faisal Ashraf's Lotus Capital Partners served as Gencom's capital markets adviser in the deal.