Gencom, a leading real estate investment and development firm based in Miami, has solidified its position in the hospitality sector with its recent acquisition of a significant two-hotel portfolio located in the renowned French Quarter of New Orleans, Louisiana. This acquisition includes two prominent properties: The Ritz-Carlton New Orleans and the Courtyard New Orleans French Quarter/Iberville, totaling 758 rooms.
Founded and led by Karim Alibhai, Gencom is known for its strategic investments, particularly in high-demand urban locations. The purchase of these two hotels marks a notable expansion for the Miami-based firm as it continues to enhance its footprint in major cities with thriving tourism markets like New Orleans. Famous for its vibrant culture, music, and events like Mardi Gras, New Orleans is considered one of the most sought-after destinations in the United States.
The Ritz-Carlton New Orleans is one of the city’s premier hotels, boasting 528 elegantly appointed rooms and suites. Beyond luxury accommodations, it serves as an event destination, featuring over 48,000 square feet of meeting and event space, making it an ideal venue for conferences, weddings, and high-profile gatherings. In addition to its luxurious rooms, The Ritz-Carlton offers a state-of-the-art fitness center, an indoor pool, and an impressive 25,000-square-foot spa—the largest in New Orleans. The hotel has undergone extensive renovations, including a notable $15 million refurbishment of its Maison Orleans Club Level, which caters to guests seeking exclusive experiences.
Adjacent to The Ritz-Carlton, the Courtyard New Orleans French Quarter/Iberville comprises 230 rooms and provides guests with modern comforts in a prime location. Its proximity to Bourbon Street, the Caesars Superdome, and the Ernest N. Morial Convention Center makes it a favored choice for both business and leisure travelers looking to explore the city’s vibrant attractions. Like its counterpart, the Courtyard hotel also recently underwent a complete renovation, modernizing all guest rooms and public spaces to reflect contemporary tastes while retaining the charm of New Orleans.
Gencom’s acquisition aligns with its strategic vision of expanding into key markets worldwide. Founded over 40 years ago, the firm manages nearly $8 billion in assets and owns 23 properties that comprise more than 7,000 hotel rooms across various brands. Furthermore, through its affiliate, Pyramid Global Hospitality, Gencom oversees 240 properties in over 40 locations globally, representing a total of 50,000 keys in its portfolio.
Gencom is not just about numbers; it thrives on delivering value and exceptional guest experiences. Alibhai, who started the firm in 1987, emphasizes a relationship-based investment approach that has propelled Gencom to its current stature in the competitive hospitality market. Alibhai's journey in hospitality began in his family's Best Western hotel in Houston, Texas, where he worked while completing his degree. He and his family originally hail from Kenya, showcasing a diverse heritage that enriches his business philosophy.
The New Orleans hospitality market has seen impressive growth in recent years, recovering strongly from pandemic impacts. Recent data highlighted the city’s second-highest increase in average daily rate (ADR), which rose by 20.5% to $224.46. Revenue per available room (RevPAR) also surged by 17.2% to $162.86, signaling the city’s enduring appeal for tourists and a lucrative prospect for hoteliers.
Karim Alibhai, reflecting on the acquisition, stated, "We continue to build on our legacy of investing in and enhancing hospitality assets with this acquisition, expanding our presence in this key destination." Meanwhile, Alessandro Colantonio, Gencom’s chief investment officer, added, "With its rich cultural heritage and strong tourism sector, New Orleans offers a unique long-term investment opportunity." This sentiment underscores the potential of the New Orleans market, drawing interest from both domestic and international investors.
As Gencom looks ahead to the future, it remains focused on properties in prime locations that offer robust growth potential and modern amenities. The firm’s latest acquisition not only enhances its existing portfolio but also indicates its commitment to maintaining a foothold in the lucrative hospitality industry.
In conclusion, as tourism in New Orleans continues to rebound and expand, Gencom's strategic acquisitions and innovative property management approach are set to keep it at the forefront of the hospitality investment landscape for years to come.
