Hospitality developer and investment firm Gencom has retaken a majority ownership of the Ritz-Carlton Key Biscayne after Brookfield Asset Management sold its position in the Miami-area luxury hotel.
The transaction was financed by Citigroup and affiliates of KSL Capital Partners, and terms of the deal were not disclosed. However, Bloomberg reports the deal's value to be over $400 million.
Gencom was one of the original developers of the 13-story resort that opened more than 20 years ago at 455 Grand Bay Drive on the island of Key Biscayne, about nine miles south of downtown Miami.
Now, the Gencom team is planning a $100 million renovation of the hotel to "ensure it remains a top luxury resort as Miami’s international epicenter continues to expand," said Karim Alibhai, founder of Gencom, in a statement.
Renovations at the 17-acre property are expected to begin in 2025. Guestrooms, public spaces, amenities and food and beverage options are set to see major upgrades throughout the process.
Prior to the deal with Brookfield, Gencom owned a minority stake in the hotel. After the hotel opened in 2000, Gencom sold its majority stake it held at the time to a private real estate investment trust in a three-property, $750 million transaction, according to the statement.
"We are excited to retake control of the asset for a long-term hold," Alibhai said in the statement.
The transaction shows KSL’s commitment to long-term plans in the hospitality sector and represents an expansion into structured partnerships with “like-minded” firms, said Dan Rohan, partner and head of tactical opportunities at KSL, in the statement.
Brookfield took over the majority ownership of the property when it bought Watermark Lodging Trust in 2022 in a transaction valued at $3.8 billion. Watermark's portfolio included 25 properties, mostly hotels, including its 66.7% interest in the Ritz-Carlton Key Biscayne.
The Ritz-Carlton Key Biscayne offers 291 rooms with 1,000 feet of beachfront access, a tennis center, a club lounge, as well as multiple pools, a spa and a fitness center. The property has 37,000 square feet of meeting space, with six restaurants, bars and cafes.
In addition to its hotel component, the Ritz-Carlton Key Biscayne also offers 188 condo-hotel units, with prices starting at $800,000 on the resale market.
Ritz-Carlton Key Biscayne's renovation is the latest in Miami from Gencom, which is also working alongside Hyatt to redevelop the aging James L. Knight Center and the adjacent Regency hotel on a city of Miami-owned site along the Miami River.