Unlocking Caribbean Capital

Unlocking Caribbean Capital

Unlocking Capital in the Caribbean

Caribbean capital is evolving, and our recent ULI webinar offered an insightful look at the opportunities and challenges facing the region. Moderated by Adam Greenfader, the session brought together industry leaders from Barbados, Jamaica, and Puerto Rico to discuss everything from impact investing and private equity to innovative deal structuring. The conversation highlighted how organizations like ULI are uniting real estate professionals, developers, and investors to shape a sustainable future for the Caribbean, particularly in light of recent economic and infrastructural challenges. Panelists shared compelling perspectives on the region’s unique dynamics, discussing how local market conditions and regulatory environments influence investment strategies. Experts like David Cummings, Isabel DeCarres, and Heath Melton emphasized the importance of strong local partnerships, flexible capital solutions, and innovative financing structures that are tailored to the diverse needs of Caribbean markets. They also explored the critical role of sustainable development, noting that resilient projects not only benefit investors but also uplift local communities and foster long-term growth. As we continue to unlock Caribbean capital, the key takeaway is that collaboration, adaptability, and forward-thinking strategies are essential to navigating this complex landscape. The webinar underscored the power of networking and knowledge sharing—elements that are driving transformative change across the region. Watch the video to gain deeper insights and learn how you can be part of this exciting journey toward a more resilient and prosperous Caribbean.

Unlocking Opportunities in the Caribbean Hotel Market: Strategic Approaches for Developers and Investors 

Market Research AG&T

Market Research AG&T

 

Executive Summary

The Caribbean hotel market presents a unique mix of challenges and opportunities for developers and investors.  2024 has been marked by fluctuating economic conditions, limitations on construction financing, an increased cost of equity, and of course a continued threat caused by climate change. Fortunately, the post Covid19 demand travel has continued with record ADR and occupancy rates. In these uncertain times, having actionable market data is key to successful investment and development. At AG&T we  explore the value of comprehensive market studies, providing a roadmap for developers, investors, and asset managers to capitalize on emerging opportunities. 

In today’s complex and competitive hotel development landscape, particularly in the Caribbean, having real-time, data-driven insights is critical for success. Developers and investors who rely on outdated or incomplete information risk making costly decisions. A well-executed market study provides the essential intelligence needed to assess opportunities, identify risks, and develop strategic approaches to investment, whether in new developments or the acquisition of distressed assets.

 

Market Overview

1. Tourism Trends and Data-Driven Insights:

The Caribbean remains one of the most popular tourist destinations globally, but tourism patterns are shifting. Post-Covid19 recovery travel trends reveal a growing preference for boutique, eco-friendly, and experiential hotels over traditional large-scale resorts. A market study provides granular data on these trends, helping developers and investors align with consumer preferences and focus on markets with the highest demand potential.

2. Key Growth Markets Identified Through Market Studies:

– Emerging Markets: A comprehensive study identifies little known or explored market areas. At AG&T we specifically look for new trends in destinations as well as existing markets that are growing beyond their “tried and true.” For example,  locations like Sint Maarten is demonstrating great  growth opportunities due to rising demand for unique and luxury travel experiences.

– Distressed Assets: Market studies pinpoint distressed assets. These reports offer actionable insights on pricing, market saturation, and infrastructure development, enabling investors to make informed decisions on acquisition and repositioning strategies.

3. The Value of Local Market Intelligence:

While national or island-wide trends are useful, localized data is essential for accurately assessing a hotel project’s potential. A robust market study provides detailed insights at the regional, city, or even neighborhood level, ensuring that developers and investors have a clear picture of demand, competition, and pricing within specific micro-markets.

What a Market Study Provides for Developers and Investors

1. Feasibility and Opportunity Assessment:

– Demand Forecasting: A market study analyzes current and projected demand for hotel rooms in the target market. For example, in regions like St. Maarten or St. Kitts, understanding whether tourism demand is driven by cruise visitors, long-term vacationers, or business travelers can drastically change a project’s design and service offerings.

– Competitive Analysis: Detailed reports compare the competitive landscape, outlining the strengths and weaknesses of existing properties. For instance, a study in the Dominican Republic may reveal that while large resorts are abundant, there’s an unmet demand for boutique, wellness-focused hotels. This insight allows developers to fill a gap in the market.

2. Financial Modeling and Profitability:

– Revenue Projections: Market studies provide data on room rates, occupancy levels, and operating costs in the target market. Financial models help investors calculate expected revenue and ROI under different scenarios. Whether targeting distressed assets in Puerto Rico or new developments in St. Vincent, having accurate financial projections is key to securing financing and ensuring long-term profitability.

– Capital Expenditure Insights: For distressed properties, market studies identify necessary capital improvements and calculate the potential return on those investments. Investors can make informed decisions on whether rehabilitation costs will result in the desired market repositioning and profitability.

3. Site Selection and Location Analysis:

– Site-Specific Data: A market study dives deep into location-specific factors, such as tourism patterns, infrastructure development, and government incentives. For example, a report on

– Accessibility and Market Entry Barriers: Islands that require two stops have historically been slow to attract new hospitality inventory. Challenges in getting to the island is a crucial factor for a developer. However, what happens when travel length shifts due to “work-at-home” trends?  A market study will assess the impact of air travel, ferry services, or visa requirements on potential guest numbers as well as the absorption of for sale condo-hotels. 

4. Regulatory and Tax Environment:

– Navigating Local Laws: Each Caribbean nation has its own set of legal, tax, and regulatory challenges. Market studies include detailed breakdowns of local regulations, such as property taxes, hotel licensing, and foreign investment restrictions. Developers and investors benefit from understanding these complexities before committing resources to a project.

– Incentive Programs: Many Caribbean nations offer tax breaks or incentives for hotel development, especially for projects that boost local employment or align with sustainability goals. Market studies identify these opportunities, allowing investors to capitalize on favorable policies.

Competitive Positioning: Why AG&T Market Studies Stand Out

1. Tailored Insights:

Unlike generalized reports, AG&T  market studies are customized to the client’s specific project goals and investment criteria. Whether you’re acquiring a distressed asset or launching a new hotel development, we offer data-driven insights designed to optimize your decision-making process.

2. Thirty-one years of Experience in the Caribbean:

With over 30 years of experience in Caribbean hotel development, AG&T leverages deep relationships and on-the-ground expertise to provide unparalleled market intelligence. Our studies incorporate both quantitative data and qualitative insights from local stakeholders, ensuring a comprehensive view of each market.

3. Proprietary Data Access:

Our clients benefit from access to proprietary datasets that are not available through public sources. This includes up-to-date information on hotel performance metrics, traveler demographics, and competitive pricing data—ensuring that you have the most current and relevant information at your fingertips.

4. Miami Based

Our main offices are based in Miami, Florida. Miami is the capital of the Caribbean and allows us to tap into a vast array of events, conferences, thought leadership programs, and associations. 

Service Offerings for Market Studies

1. Basic Market Study Package: To buy or not to buy 

– Focus on feasibility and high-level market analysis.

– Includes demand assessment, competitive analysis, and location data.

Ideal for preliminary project evaluations or investors seeking initial insights into a market.

2. Foundational Market Study Package: Creating the Highest and Best Use development 

– Comprehensive analysis, including financial modeling, revenue projections, and site selection guidance.

– Detailed breakdown of regulatory and tax environments.

– In-depth competitive landscape analysis and investor reports.

– Site planning and design recommendations

–  Sales and marketing guidance in terms of pricing inventory, rental program, ROI, and HOA, and hotel brand recommendations.  

Ideal for investors and developers looking for a detailed blueprint to guide decision-making for their internal team. 

3. Advanced Market Study Package: Building the Capital Stack

– Implement architectural designs into financial modeling

– Establish capital stack requirement

– identify key project metrics, returns, and waterfall structure. 

Ideal for investors and developers looking for a presentation focused document to attract capital and construction debt. 

 

Case Study:  “Pioneering Luxury: A Case Study on Developing Sint Maarten’s First Five-Star Hotel”

In 2019, AG&T initiated the first of three comprehensive market studies for a 125-acre beachfront parcel at Indigo Bay on the Dutch side of Sint Maarten. The phase one study focused on determining the highest and best use for the land, offering insights into project density, hotel characteristics, and land pricing. Based on this research, AG&T prepared an offering memorandum, which became a key resource for a developer conducting due diligence. As a result, the developer secured an option on the property, marking the initial step towards a major luxury development.

As part of the due diligence process, AG&T conducted a Foundational Comparative Market Study, essential for evaluating the region’s market potential. Since Sint Maarten had not seen a new luxury hotel in decades, AG&T explored 11 distinct luxury hotel projects across key markets, including Anguilla, St. Barths, Turks and Caicos, Cabo San Lucas, Panama, and Costa Rica. The study provided a detailed analysis of the competitive landscape, pricing models, unit size dimensions, and buyer preferences, leading to a full-scale project design. This design phase, supported by architecture, engineering, legal, and marketing teams, resulted in the creation of the Vie L’Ven hotel and residences, complete with carefully chosen hotel brand partners, food and beverage concepts, and spa affiliations.

As the global landscape shifted due to the COVID-19 pandemic, AG&T conducted a third and In-depth Market Study just prior to the project launch in February 2024. This study revealed key changes in pricing metrics, amenity preferences, and inventory release strategies, helping to align the development with the evolving needs of the post-pandemic travel and tourism market. 

“We are very excited about the Vie L’Ven Hotel and Residences development.  The research conducted by AG&T helped us better define the project scope and fine tune the condo-hotel unit offering.”  Jordan Debrincat, VP Altree development.  

By February 2024, Vie L’Ven broke ground. The first phase of condo-hotel residences have been successfully marketed and sold, positioning the development as a premier luxury destination in Sint Maarten.

Conclusion: The Strategic Value of a Market Study

In today’s competitive and fast-changing Caribbean hotel market, having access to reliable, actionable data is more critical than ever. A well-executed market study provides developers and investors with the insights needed to navigate challenges, capitalize on opportunities, and make confident, informed decisions. Whether you are looking to acquire distressed assets, enter new markets, or reposition existing properties, AG&T provides  tailored market studies offer the strategic guidance needed to ensure long-term success.

 

 

About AG&T

AG&T is a leading Caribbean development and advisory founded in  1993. We have offices in Miami, Palm Beach, and Puerto Rico. AG&T concentrates in creating resort developments, island projects, and master planned communities. We have a track record in over 18 Caribbean islands in 55 projects that is valued at 1.5 Billion USD.  Our key services include:

• Hotel Development and planning

• Commercial Real Estate Sales

• Capital Advisory (Equity | Debt)

To learn more contact us at amanda@agandt.com or visit our web site www.agandt.com. 

First Look Inside Vie L’Ven, St. Maarten’s New Luxury Resort and Residences

All New Gallery

First Look Inside Vie L’Ven, St. Maarten’s New Luxury Resort and Residences

 

Vie L’Ven, a forthcoming resort and residential property from Altree Developments, is bringing a new level of luxury to the Dutch side of the Caribbean island of St. Maarten.

The project is slated to make its debut in 2028, and Robb Report got an exclusive first look at the renderings. The development—the name translates to “life to live”—will feature a hotel component alongside a collection of fully furnished homes ranging from $800,000 to over $2 million. Altogether, the Cay Bay project will comprise a total of 280 units with 190 hotel rooms, 60 of which will be suites, and 90 private residences.

Vie L'Ven st. maarten residences
The open-air lobby entrance at Vie L’Ven, a forthcoming luxury residence in St. Maarten.BINYAN

“Vie L’Ven stands as a unique and unparalleled project in St. Maarten, distinguished by its singular luxury experience,” Zev Mandelbaum, CEO of Altree Developments, tells Robb Report. “With only one other five-star hotel catering to a similar clientele, Vie L’Ven’s presence fills a crucial gap, providing an exclusive destination that will undoubtedly be in high demand. The extensive amenities that will be offered at Vie L’Ven set it apart, establishing a standard of luxury unmatched anywhere else on the island.”

Vie L'Ven hotel and residences
The property will feature a five-star hotel and a selection of private homes for purchase.BINYAN

Drawing upon both French and Dutch cultures for inspiration, the oceanfront building will be designed by award-winning architectural firm HKS with interiors by Toronto’s Studio Munge. In addition, the developer tapped Sotheby’s International Realty to handle all the sales and marketing. The homes on offer will be available in several different layouts, ranging from one-, two-, and three-bedroom residences that measure from 600 to 6,000 square feet. Owners will also have the option of entering their home into the resort’s rental program for short- or long-term stays.

Naturally, residents will have access to all the hotel’s facilities, including its three swimming pools, signature restaurants, and 24/7 concierge services. The grounds will also sport a world-class fitness center and spa and can be reached via boat.

Vie L'Ven st maarten
An aerial view of the resort’s massive beachside swimming pool.BINYAN

“St. Maarten is a captivating island that seamlessly melds the cultural influences of both the French and Dutch, cultivating a distinctive European ambiance in the heart of the Caribbean,” adds Mandelbaum. “Embraced by natural beauty and tranquility, the island beckons with a plethora of attractions, from exhilarating nightlife to the allure of mega yachts. For those seeking a perfect blend of excitement and relaxation, St. Maarten promises a tapestry of unique experiences.” 

Sint Maarten Navigates Past The Storms

 

Navigating Past the Storms: Sint Maarten Resilience Amidst Hurricanes and the Covid-19 Crisis

 

The Hurricanes of 2017

In September of 2017, Sint Maarten was slammed with a category five (5) hurricane. The hurricanes caused billions of dollars’ worth of property damage and lost-lives. The Hurricane had a devastating impact on Sint Maarten’s economy.  By 2018, tourism plummeted to -56% from the previous year.  According to The United Nations (UN), the estimated damage was $10 Billion.  It took more than two-years of rebuilding and recovery efforts for Sint Maarten’s economy to start-up again.

The COVID19 Pandemic

Just about the time,  Sint Maarten was starting to recover from the hurricanes The COVID19 Pandemic brought an almost 100% shut down to Sint Maarten’s economy. According to the Caribbean Hotel and Tourism Association, an estimated 75% of hotels were forced to close in the wake of the crisis, leading to an immense loss of revenue. The economy contracted by an estimated -17.9% in 2020, with major impacts on fiscal revenues. There also was a significant increase in the cost of living due to the rise in prices for food, housing, energy, and healthcare. This abrupt halt in tourism activities left many businesses, including restaurants, tour operators, and local artisans, struggling to survive.

Unemployment and Migration:

With the closure of hotels and the cessation of cruise ship operations, the repercussions reverberated throughout the labor market. The lack of employment opportunities compelled thousands of individuals to leave the islands in search of alternative means to support themselves and their families.

Government Response and Support:

The Sint Maarten Government swiftly recognized the urgency of the situation and implemented various measures to mitigate the economic impact. Stimulus packages were rolled out to provide financial relief to affected individuals and businesses. These packages included wage subsidy programs, grants, and low-interest loans aimed at preventing further job losses and stimulating economic activity.

Road to Recovery:

Despite the immense challenges faced by Sint Maarten, today there are strong signs of resilience and recovery. According to the International Monetary Fund (IMF), Sint Maarten projects a strong tourism recovery in 2023 with an expectation of  5% growth.  Economic activity is anticipated to recover to pre-hurricane/pandemic levels with a 1.4 Billion GDP in 2023 and per capita GDP of $32,000 USD.  

Airlift

The Princess Juliana International Airport (SXM) continues with its ongoing reconstruction and is expected to be complete by 2024.  According to Tourism Analytics, total airport arrivals were 416,209 people or almost 65% of 2019 levels.

Cruise Ships

A new record for cruise ship daily arrivals was set for St Maarten on January 17, 2023 with 30,349 people. Projections for 2023 are for 1.1 MM passengers and back to stabilized levels of 1.5MM for 2024.

Hotels

According to data by the Saint Martin Hospitality & Trade Association, as of December 2022, there are approximately 2,231 hotel and time share units on the island.  Hotel occupancy has been steadily increasing with record occupancy of 71% in 2022 and ADR’s at peak or above peak levels.

Seasonality

There appears to be a positive shift post COVID19 in terms of the seasonality of Caribbean travel. The summer season, which is normally the low season, has seen a significant increase in occupancy in 2021 and 2022. This occupancy increase has been primarily from family travel seeking destinations more affordable and closer to home (US/Canada).   

Length of Stay

The length of stay has increased post COVID19 as travelers continue to blend leisure with business – “bleisure”.  

Conclusion

Sint Maarten’s resilience in the face of the 2017 hurricanes and the Covid-19 pandemic is a testament to its people and determination. Despite the devastating impact of these crises, the island has made significant strides in rebuilding its economy. With government support and stimulus packages, Sint Maarten has seen a strong rebound in tourism, reflected in increased hotel occupancy and the resumption of cruise ship activities. Projections for 2023 indicate a robust recovery, with anticipated growth in tourism, a recovering GDP, and positive trends in seasonality and length of stay. Sint Maarten’s ability to adapt and rebuild offers hope for a prosperous future and a testament to the resilience of the Caribbean region as a whole.

If you are interested in learning more about the Caribbean, join us at this years’ CHRIS conference in Coral Gables, Florida from May 22-25, 2023.

https://www.burba.com/CHRIS

AG&T is a real estate development and consulting company founded in 1998 with headquarters in Miami, Florida. Our  track record spans over 55 real estate development projects in Puerto Rico, Sint Maarten, Costa Rica, Panama, Mexico, Dominican Republic, and various other Caribbean islands. www.agandt.com

 

Puerto Rico’s hotel Industry takes centerstage this week in Miami.

 

 

 

Puerto Rico takes centerstage at the Caribbean Hospitality Investment Summit (CHRIS) held this week at the Hardrock Hotel in Miami.

 

The Puerto Rico Builders Association, one of the sponsors of the CHRIS event, was honored to congratulate Hugh Andrews, CEO, IHE as he received the Lifetime Achievement Award. The award was presented by Vanessa Ledesma Acting CEO and Director at Caribbean Hotel and Tourism Association.  Vanessa, herself a great friend and native of Puerto Rico, discussed with Hugh Andrews his vast accomplishments that include the development of such Icon hotel properties as the Conquistador Hotel, El Convento, Las Casitas, and Vanderbilt Hotel.

 

STR in its annual report, listed Puerto Rico’s year over year recovery from 2019 as one of the Caribbean’s  top destinations. This includes maintaining strong airlift throughout the pandemic, maintaining high ADRs, and an impressive 82% Occupancy rate. The recently delivered Aloft San Juan hotel was named as top CHRIS hospitality development of 2021.  Adam Greenfader, Managing partner of AG&T and Florida Liaison Chair of the Puerto Rican Builders Association,  spoke on the success of the P3 program in Puerto Rico. He mentioned in the Public-Private Collaboration panel that the island will be soliciting a P3 bid for the management of the 9 remaining local and national airports.

 

Kenny Blatt, Principal/Managing Partner of CPG Real Estate, spoke extensively on Puerto Rico’s hospitality industry. He discussed the island’s capacity to greatly expand its hospitality and tourism sectors.  Blatt’s was enthusiastic about the transformation at Dorado Beach, A Ritz-Carlton Reserve and its evolution since 1958.   His key takeaways on Dorado Beach’s success include working with local partners as a critical best practice. Blatt praised the Stubbe family and PRISA group repeatedly as “ the greatest developers any resort can ever have.”

 

The Puerto Rico Builders Association will be celebrating its 70 year anniversary at its upcoming conference on October 27-28, 2021. For more information visit https://constructorespr.com

 

ULI | Heitman Report

 

 

CLIMATE RISK AND REAL ESTATE

Excerpts from the 2020 ULI | Heitman Report.

ULI partnered with Heitman, a global real estate investment management firm, to assess the potential impacts of climate change on the long-term viability of real estate assets. Derived from a series of interviews with leading institutional investors, investment managers, investment consultants and others, the report provides members with an inside look at how real estate investors are factoring climate risk into their investment decision-making and management processes.

See full report at : https://knowledge.uli.org/en/Reports/Research%20Reports/2020/-/media/b81db4bbc77845f7834f24b0e974dd7a.ashx

ULI publishes this updated report amid a global pandemic and economic uncertainty. For many, it may feel as if the priority of addressing climate change is dissipating as we face the immediate challenge of COVID-19.  Although it is still too early to draw conclusions about the long-term implications of COVID-19 for our cities and the real estate industry, such a wide-scale humanitarian crisis throws the connections between environmental, social, and governance (ESG) issues and our economies into sharper focus.

However, just as the coronavirus has exposed many weaknesses, it has also shown us that we have the ability to adapt and change our behaviors quickly and radically.

Globally, most major economic hubs are in coastal, river delta, or other high-risk areas. These locations present many advantages, relating to connectivity, trade, quality of life and placemaking. These cities house more than half the global population, with much higher percentages of residents in some regions. About 80 percent of U.S. residents live in cities, for example, 39 percent of the European Union population lives in metro areas with 1 million or more inhabitants.

In 2020 (as of October 7), there have been 16 weather/climate disaster events with losses exceeding $1 billion each to affect the United States. These events included 1 drought event, 11 severe storm events, 3 tropical cyclone events, and 1 wildfire event. Overall, these events resulted in the deaths of 188 people and had significant economic effects on the areas impacted. The 1980–2019 annual average is 6.6 events (CPI-adjusted); the annual average for the most recent 5 years (2015–2019) is 13.8 events (CPI-adjusted).

Many of the most economically powerful coastal cities face significant climate risk. However, these cities offer some of the most attractive investment environments, meaning that the risk is worth the return. “We have a dilemma that some of the most attractive markets are also markets that are affected more by weather-related risks,” noted one real estate investment manager. However, a few investors indicated that they are beginning to suspend acquisitions or take steps to reduce their real estate footprint in city markets where they harbor climate-risk concerns. The phases after a big disaster, according to one interviewee, were to see the market buoyed up by subsidies and insurance, followed by rebuilding and speculative demand. This short-term “sugar high” of disaster support, insurance claims, and opportunistic investment likely masks underlying negative and fiscal impacts that could be exacerbated by future climate-related events (or other shocks).

The research found a number of misleading correlations, such as flooding having a positive impact on cash solvency and fiscal health, and hurricanes increasing budget solvency. However, the current model of contingencies will not be sustainable with the expected increase in the frequency and intensity of climate change impacts, as well as slow-moving stresses such as sea-level rise, which further exaggerate the effect of peak events. In other words, a weather-related event has not yet adequately “shocked” the system of contingencies as to break it. However, the COVID-19 crisis may prove to be the ultimate shock to the system that breaks it. What happens when that “extreme event” is no longer a geographically or temporally discrete event?

“There are three big mechanisms through which costs are likely to increase going forward: one is insurance, [and] the second area is . . . tax rates and the third is cost of financing as banks start to cost the added risk.

 BlackRock, the world’s largest asset manager, made headlines in January 2020 when Larry Fink, the firm’s CEO, stated in his annual letter on corporate governance that “climate change has become a defining factor in companies’ long-term prospects,” and “we are on the edge of a fundamental reshaping of finance.” The BlackRock announcement signified an increasing industry prioritization of climate change mitigation, or efforts to prevent or reduce greenhouse gas emissions.

Most interviewees also expressed overall uncertainty about future insurance prices and the likely market impacts of shifting insurance policy. In an extreme scenario, some investors envisioned a future in which properties could not qualify for insurance at all and therefore became ineligible for loans.   The annual insurance pricing structure can underpredict risk for longer hold periods, as well as for the underpinning infrastructure. The approach also assumes the long-term availability of underwriting capabilities, in terms of the affordability and availability of products. If sites are unable to obtain insurance, they will not be eligible for loans, leading to major potential valuation consequences.

Long-term focus: In lay terms, catastrophe models simulate “thousands of versions of next year,” not “thousands of successive years.”

All agreed that valuation is currently lagging behind recognition of climate risk and anticipate this changing in the near future. Valuation does not incorporate climate risks because it is “backward-looking”. Models typically do not allow a user to modify future climate conditions, and there are no established best practices to apply insights from climate science to catastrophic hazard risk modeling. Valuation has become more urgent for investors considering longer time horizons. Some investors have also informally discussed properties having “expiration dates” after which they may no longer be safe or suitable for residential or business use without extensive investment in surrounding infrastructure.

Anticipating steep declines in building value because of climate impacts runs counter to how buildings are currently valued. In the current model, value is derived from the residual value of the land and structure, plus discounted cash flows over time that drive net present value and cap rates. However, if dramatic changes lead the value of the structure and land to approach zero, cap rates would change significantly, with a steep decrease in value after purchase, and would need to be offset with increased cash flow and profitability to maintain net present value.

Several discussed efforts to design risk mitigation strategies for vulnerable assets and price these costs into deals. Some also spoke about resilient design as presenting opportunities to differentiate assets and enhance value. For example, one interviewee said they were exploring opportunities to create a “resilience zone” for entire neighborhoods.

Parametric insurance, where insurance payouts are linked to when predefined event parameters such as extreme weather events are met or exceeded, is an emerging option. Industry leaders note that parametric insurance may become more widespread, but it is not an appropriate solution for all scenarios. The Caribbean Catastrophe Risk Insurance Facility (CCRIF) is one example of a regional fund.  #heitman 

 

AG&T is committed to being part of the climate solution. AG&T joined over a thousand leaders from local governments, businesses, universities, and other institutions across the country as part of the “America Is All In” joint statement.  To learn more click here. 

Returns on Resilience in The Caribbean

ULi Speakers

Returns on Resilience 

As the world struggles to return back to normal from the Covid19 pandemic, environmental concerns continues to loom as an area of great concern for world and the Caribbean region in particular.   What strategies have institutional capital,  developers, reinsurance companies and owners in the Caribbean pursued to protect their properties from climate-related risks? Do these resilience investments make business sense as a development objective? What has the capital market response been? And how have developers and property owners measured their success? 

Speakers: 

Jan Raes, ABN AMRO  Global Sustainability Advisor  

Esteban Biondi, ATM Associate Principal

Koen Waterstudio NL, Co-founder

Adam Greenfader, AG&T, Managing Partner 

Topics to Include:

1. What is the capital doing about investing in resilient projects?

2. How are developers integrating resiliency practices into their projects?

3. The $ of Resiliency – Beyond the ULI Heitman Report

4. Aquatic Architecture: is it just a matter of Time?

 

To learn more about AG&T. 

 

New Hotel Announced in St. Maarten

Site Plan of Hotel

INDIGO BAY–Two prominent real estate development firms have partnered with Cay Bay Development (CBD) NV, the master developer at Indigo Bay Development, to propose the development of a US $220 million luxury hotel resort and condos in St. Maarten.  AG&T provided advisory services and a group of independent real estate brokers led by Adam Greenfader at Oceanfront International Group at Douglas Elliman coordinated the transaction. 

 

 

The proposed high-end hotel development at Indigo Bay Development,  is expected to feature certain luxury accommodations and five-star amenities, including 94 hotel rooms and suites, and 130 residential homes. Additionally, the proposed hotel development is expected to feature large water ponds and greenery areas in keeping with its eco-centric vision, as well as an extensive public parking area for public beach access to Indigo Bay.

  “The timing for such a development could not have come at a more opportune time, as country St. Maarten is tasked with creating new and innovative strategies to counter the global economic crisis due to the pandemic,”.

In an economy whereby hospitality and tourism are at the centre of its recovery, it is expected that the development of a high-end branded hotel in St. Maarten would provide an enormous boost to this endeavour by enhancing several areas in tourism.

 

Hotel Concept at Indigo Bay

 

According to the release it can enhance St. Maarten’s global attractiveness as a prime tourist destination; increase hotel accommodation by approximately 20 per cent; increase the number of annual visitors to St. Maarten by 32,000 based on hotel occupancy of 65 per cent (double) and an average stay of five nights; and attract high value tourists who may choose St. Maarten as a vacation destination as opposed to accessing surrounding islands through its air and sea ports of entry, it was stated in the release.

The proposed world-class hotel development, once completed, will be managed by an internationally-recognised hotel brand, which will lend itself to greater global recognition, the release said. The projected marketed average daily rate (ADR) for hotel rooms at the proposed new hotel development is expected to be substantially higher than the current average daily rates on St. Maarten.

The CBD and the principals of the proposed hotel development seek to assure that the interest of the citizenry and of the environment are paramount to their endeavor.  Six acres of the overall hotel site of about 18 acres is projected as a green zone, including the retention ponds that were originally constructed at Indigo Bay Development by CBD. 

For more information about Caribbean hotel opportunities contact us 

The State of Tourism in Latin America and Caribbean with IDB Invest

Rogerio Bass

ULI Caribbean Conversation

“The role of multilateral development banks (MDBs) in supporting the tourism sector in Latin America and the Caribbean”.

Conversation with with Rogerio Basso, Head of Tourism at IDB Invest and Adam Greenfader, Chair ULI Caribbean Council / Managing Partner AG&T.

  • * State of affairs of the tourism sector prior to COVID-19?
  • What makes this crisis different than prior ones?
  • What tourism players are doing to mitigate the impact of the pandemic?
  • Top three actions to better face this crisis?

 

Rogerio Basso leads all initiatives related to tourism in Latin America and the Caribbean for IDB Invest, the private sector arm of the Inter-American Development Bank Group. In his capacity as Head of Tourism, he is responsible for origination, investments and for executing IDB Invest’s tourism strategy in the region, offering a variety of financial instruments including debt, mezzanine and equity. Rogerio has executed numerous tourism transactions in the region spanning from hotels to conference centers.With over two decades of experience in banking, private equity, development, and strategy consulting within the hospitality and real estate sectors, Rogerio has held a variety of positions across top global firms, working across a variety of domestic and foreign markets, with a strong focus in Latin America. Prior to joining IDB Invest, he was CIO at Key International, a Miami-based real estate investment platform active across many industry sectors. He also served as EVP Acquisitions & Development for Terranum Hotels, an owner and operator of hotels across Latin America, sponsored by Colombia-based Santo Domingo Group and Sam Zell’s Equity International.

 Rogerio holds a business degree from the College of William and Mary and a master’s degree from the School of Hotel Administration at Cornell University.