New Owner is Planning a Significant Investment to Reaffirm Fairmont Southampton, Bermuda as One of The Island's Premier Destination Resorts
MIAMI, Dec. 16, 2019 /PRNewswire/ -- An affiliate of Miami-based Gencom, a leading domestic and international investment and development firm, has acquired Fairmont Southampton, Bermuda. The hotel will remain under the brand and management of Fairmont Hotels & Resorts. News of the acquisition comes with the announcement that the U.S.-based investment firm has committed to a long-term investment in the property, returning one of Bermuda's leading resorts to its original glory. Financial terms of the transaction were not disclosed.
The acquisition marks Gencom's second investment in Bermuda. In 2017, a Gencom-led affiliate acquired the 200-acre Tucker's Point development from receivership that includes Rosewood Bermuda, the island's renowned, ultra-luxury resort. Following the acquisition, the affiliate executed an expansive, $25 million renovation of the property. The acquisition of Fairmont Southampton reaffirms the firm's confidence in the island's hospitality and tourism sector. Bermuda benefits from direct flight access from the East Coast of the U.S., as well as Europe, making it a natural destination for leisure and group travelers. Over the last couple of years, Bermuda has seen double digit growth in airport arrivals, as well as foreign spending. With a new, state-of-the-art airport opening in the first half of 2020, increase in airlift and visitation is expected.
"Acquiring Fairmont Southampton demonstrates Gencom's steadfast commitment to supporting the long-term growth of Bermuda's tourism and hospitality sector," said Gencom Founder Karim Alibhai. "The island is located less than three hours from most major North American cities, making Bermuda a rare and accessible paradise. With a planned restoration, we aim to create a wonderful, updated destination resort experience at Fairmont Southampton for leisure and group travelers from all over the world."
Perched on Bermuda's stunning south shore with miles of pink sand beaches, the luxurious Fairmont Southampton beach resort sits on nearly 100 acres. As the largest hotel in Bermuda, the 593-room resort offers unparalleled amenities including ten restaurants; 18-hole championship par 3 golf course; indoor spa pool and outdoor resort pool; 31,000 square foot signature branded Willow Stream Spa; state-of-the-art fitness center and 29,000 square feet of meeting space. One of the most defining features of the property is the resort's sprawling oceanfront Beach Club, which features water sports, an all-weather tennis center and ocean-side dining. Set on a private pink sand beach overlooking Bermuda's striking turquoise water, the Beach Club is perfect for both sunning and sports. Fairmont Southampton has been a AAA Four Diamond resort since 1982. The new ownership is committed to a significant investment in the long-term success of the resort. Gencom is currently reviewing all aspects of the property and anticipates a full reveal of their re-imagined designs for the resort in 2020.
"Adding Fairmont Southampton to our luxury, mixed-use portfolio demonstrates Gencom's ongoing strategy of seeking prime hospitality investment opportunities and creating value through the redevelopment and repositioning of these assets," said Alessandro Colantonio, Gencom's Executive Vice President of Acquisitions & Capital Markets. "As a result of our successful acquisition and renovation of Rosewood Bermuda, Gencom has gained acute knowledge and experience in the Bermuda market. We are well-poised to properly restore the iconic Fairmont Southampton, further expanding our local relationships and presence in the market. Through our planned investments, the resort will once again become a leading destination for both leisure and group travelers."
"The Government applauds this deal as testament not only to Gencom's strong commitment to Bermuda but also to the continuing renaissance of our island's tourism industry," said Zane DeSilva, Minister of Tourism & Transport. "We support what it means for this hallmark hotel and welcome the fact it sends a strong message to the world about Bermuda's tourism investment value."
"As with Gencom's purchase of Rosewood Bermuda, this major investment underscores robust confidence in our island's hospitality sector and signals the start of a new era for this landmark property," said BTA CEO Kevin Dallas. "The acquisition and any resulting enhancements at the Fairmont Southampton resort will benefit the hotel, drive eventual growth in our group-sales sector, and strengthen the overall quality of Bermuda's tourism product as we revitalize this industry to keep the island competitive. The Bermuda Tourism Authority looks forward to working with all parties involved to build on the hotel's success towards an exciting future."
The Seller, AccorInvest, is both owner and operator of a portfolio of more than 850 hotels, owned and leased, located in 26 countries in Europe, Latin America and Asia. The Group invests in order to consolidate its portfolio through hotel renovations and new hotel developments in Europe on economy & midscale segments.
Founded in 1987 by Karim Alibhai, Gencom is one of the nation's leading domestic and international investment and development firms specializing in hospitality with further emphasis on the luxury, mixed-use sector as well as related operating platform investments. 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, including Gencom American Hospitality, Summerfield Suites, Carnival Resorts and Interstate Hotels. Gencom companies' successful track record has led to significant ventures with prominent institutional investors, prominent family groups and other strategic partners both domestically and internationally. For more information about Gencom, please visit www.gencomgrp.com.
Alessandro E. Colantonio
EVP – Acquisitions & Capital Markets