GENCOM, A U.S.-BASED real estate investment and development firm, recently acquired The Ritz-Carlton New Orleans and the Courtyard New Orleans French Quarter/Iberville, a 758-key, two-hotel portfolio in New Orleans’ French Quarter in Louisiana. The Miami-based firm is led by founder and principal Karim Alibhai.
Chicago-based Monroe Capital provided financing for the acquisition, while New York-based Eastdil Secured represented both parties in the transaction, Gencom said in a statement.
“We continue to build on our legacy of investing in and enhancing hospitality assets with this acquisition, expanding our presence in this key destination,” Alibhai said. “New Orleans is a strong market for luxury hospitality, and we look forward to bringing our expertise to further elevate these properties. We are excited to work with Marriott to ensure The Ritz-Carlton, New Orleans, and Courtyard French Quarter continue delivering exceptional guest experiences.”
The Ritz-Carlton on Canal Street has 528 rooms and suites, more than 48,000 square feet of event space, a fitness center, an indoor pool and a 25,000-square-foot spa, the largest in the city, the statement said. The adjacent 230-key Courtyard hotel is near Bourbon Street, Caesars Superdome and the Ernest N. Morial Convention Center.
“This acquisition is especially meaningful as it marks Gencom’s 10th Ritz-Carlton-branded project, following the recent opening of Nekajui, a Ritz-Carlton Reserve in Costa Rica," Alibhai said. "We are proud to have built and maintained a long-standing relationship with the Ritz-Carlton brand through both development and acquisitions.”
Both hotels recently underwent multi-year renovations, the statement said.
The Ritz-Carlton upgraded guestrooms and public areas, including a $15 million refurbishment of its Maison Orleans Club Level, while the Courtyard modernized all guest rooms and public spaces.
“As Gencom continues acquiring and developing luxury hotel assets in key U.S. destinations, this acquisition strategically expands our presence in the dynamic New Orleans market,” said Alessandro Colantonio, Gencom’s chief investment officer. “With its rich cultural heritage and strong tourism sector, New Orleans offers a unique long-term investment opportunity. The renovations and prime locations of both properties further strengthen their positioning as top-tier hospitality assets.”
Founded more than 40 years ago, Gencom manages nearly $8 billion in assets, with 23 owned properties totaling more than 7,000 rooms worldwide. Through its affiliate Pyramid Global Hospitality, it oversees 240 properties in more than 40 locations, totaling 50,000 keys.
Alibhai founded Gencom in 1987 after working at his family’s Best Western in Houston, where he finished college. Born in Kenya, his family had lived there for generations after leaving India.
Helped by Mardi Gras, New Orleans reported the second-highest gains in ADR, up 20.5 percent to $224.46, and RevPAR, up 17.2 percent to $162.86, during the week ending March 8, according to CoStar. However, occupancy declined 2.7 percent to 72.6 percent.
