Posted by: Editor on Nov 24, 2006 – 12:15 PM
newsandinfo The Paradise Island Harbour Resort and the Nassau Palm Resort on West Bay Street have both been sold to Karim Alibhai, an international hotelier and principal of the Gencom Group, for an undisclosed amount.
Valentine Grimes, Mr. Alibhai’s Bahamian attorney, said [on Nov 20] the sales of both properties and all details have been completed, although a public announcement had not been made. He said this marks the first time Mr. Alibhai, who owns Ritz Carlton-branded resorts in Key Biscayne and the Turks & Caicos Islands, has invested in the Bahamas.
However, Mr. Alibhai is also currently involved in another “more substantial project” in the Bahamas, which Mr. Grimes said is “40 times bigger” than two Nassau properties he has just purchased.
Mr. Grimes is also representing Mr. Alibhai in that venture, which he declined to identify. He noted that a final decision has not been made regarding whether or not the two Nassau resorts will operate under their existing names, new names or whether they will be branded.
According to the Gencom Group website, Mr. Alibhai is the founder and principal of the company. He has more than 20 years’ experience in the hospitality industry, and oversees all the investment activity, including acquisitions, disposals, developments, repositioning and financing. He founded the company in 1987.
The company was invested in more than 100 hotel transactions over the past 20 years, with the investment generating in excess of two times’ a return of capital. Gencom has received more than $2 billion in financing from Lehman Brothers and Credit Suisse First Boston among other financiers.
Lehman Brothers’ private equity arm previously had an ownership stake in the two Nassau resorts, with Driftwood Hospitality Management the former operating partner. Lehman Brothers provided the financing for the resorts, and the same pair was also involved in the Royal Oasis Hotel on Grand Bahama until it closed.
Through various affiliates and partnerships, Gencom and Karim Alibhai hold significant ownership interests in numerous hospitality and residential-related projects. Currently Mr. Alibhai has the company focused on the development and acquisition of luxury mixed-use hotels, including Ritz-Carlton and Hyatt properties, with ancillary residential components in key resort and urban markets.
Gencom Group is currently involved in seven Ritz-Carlton projects in various stages of development, including the first of its kind, Molasses Reef, a Ritz-Carlton Reserve, in the Turks and Caicos.
A Gencom division continues to make investments in portfolios and single assets within the hotel industry, either directly or through sponsored vehicles. Gencom is headquartered in Miami, with regional offices in Houston, the company’s website added.
Cara Brennen,
The Tribune