Gencom Reclaims Majority Stake in Ritz-Carlton Coconut Grove

Gencom, a Miami-based real estate investment and hospitality firm, has reacquired a majority ownership stake in The Ritz-Carlton Coconut Grove in Miami, Florida. 

The deal was financed with support from Banco Inbursa, although the financial terms were not publicly disclosed.

Deal background

Gencom originally acquired the 115-room luxury hotel in 2011 before selling a majority stake in 2017.

In the latest deal, Gencom bought back majority ownership from Hersha Hospitality Trust through a Gencom-led joint venture, bringing the property back under the control of its original owner and developer.

Property features and recent upgrades

Opened in 2002, The Ritz-Carlton Coconut Grove offers approximately 30,000 square feet of flexible indoor and outdoor meeting space. Amenities include a swimming pool, a boutique spa and salon, a fitness center, a poolside restaurant, and a signature bar, in addition to its 115 guestrooms and suites.

The property last underwent a comprehensive renovation in 2018, refreshing guestrooms, public areas, and food and beverage outlets. Renovations included updates to Isabelle’s Coconut Grove restaurant and The Commodore bar, aligning the hotel with evolving expectations of luxury guests.

Its relatively small size and boutique positioning differentiate it from larger convention-focused luxury hotels in the city.

Industry trends

By reclaiming majority ownership, Gencom gains greater flexibility to implement operational enhancements, pursue future renovations, and align the property more closely with its long-term hospitality strategy. The move also underscores confidence in Miami’s demand from both leisure and business travelers.

Additionally, the transaction reflects the continued recovery of the US hotel market. Investor activity remains strong, as demonstrated by Blackstone’s recent $130 million acquisition of the Four Seasons Hotel San Francisco, its first hotel purchase in that city in nearly a decade.

Photo by Antonio Cuellar on Unsplash