Gencom Acquires InterContinental Hotel In Downtown Miami

The InterContinental Miami hotel has been acquired by a Gencom-led partnership, marking the first time the 43-year-old hotel has changed hands in over 20 years. The hotel, located at 100 Chopin Plaza, features 652 keys and is situated on the waterfront, next to Bayfront Park. According to a release, the acquisition was made from an entity tracing to Strategic Hotels & Resorts, which is owned by China's Daija Insurance Group.

Gencom, a Miami-based hospitality firm, declined to disclose the price of the acquisition, but a person familiar with the matter told Bloomberg that the sale totaled roughly $300M. The acquisition is a significant addition to Gencom's portfolio, according to Gencom Chief Investment Officer Alessandro Colantonio. Colantonio stated that the InterContinental Miami represents an important opportunity to deepen the company's presence in one of the most dynamic and globally recognized markets in the country.

Prior to the sale, Strategic Hotels & Resorts had renovated the hotel's room interiors, the Club InterContinental Lounge, and the pool cabanas and SkyLawn outdoor event space. Gencom and its partner, White Bridge Capital, plan to update the lobby and food and beverage options. The company's Managing Director of Acquisitions, Ignasi Puig, noted that the recently completed renovation allows the firm to focus on strengthening revenue across rooms, meetings and events, and dining.

The acquisition is part of Gencom's broader investment strategy, which involves acquiring luxury hotels on the East Coast. Over the last few years, the company has spent over $1B on acquiring such properties, primarily Ritz-Carlton hotels. Gencom has also invested millions in upgrading these properties. The firm's acquisition strategy is driven towards assets where owners have been unable to reinvest in their properties, according to Karim Alibhai, the company's leader.

Gencom's recent acquisitions include the Marriott brand's Key Biscayne location, which it acquired for over $400M in 2024, and the Ritz-Carlton Coconut Grove, in which it bought back the majority stake earlier this year. The company also spent $320M on the 253-key Ritz-Carlton New York in February and $300M on the 587-room Thompson Central Park at the end of 2024. Additionally, Gencom purchased another InterContinental-branded hotel in a joint venture for $230M in New York in December.

The company is searching for more acquisition targets, particularly in California, where multiple assets are involved in distressed sales. Alibhai noted that Gencom is looking for properties that are not positioned correctly, are not managed to their fullest potential, or are starved for capital expenditures. This strategy allows the company to acquire properties at a lower cost and then invest in upgrading them to increase their value.

The acquisition of the InterContinental Miami hotel marks a significant milestone for Gencom, as it continues to expand its portfolio of luxury hotels on the East Coast. With its plans to update the lobby and food and beverage options, the company aims to strengthen revenue and build on the enhanced guest experience in a market with substantial barriers to entry. This article is based on reporting by Bisnow.