State of the Caribbean Hospitality Market: Capital Markets, Lending, and the Road to Recovery

State of the Caribbean Hospitality Market: Capital Markets, Lending, and the Road to Recovery

On March 16, 2021, at a time when much of the global hospitality industry remained in crisis, the Urban Land Institute Caribbean Council convened one of its most comprehensive discussions on the future of Caribbean tourism and hotel investment.

The webinar, “State of the Caribbean Marketplace,” brought together an exceptional panel of leaders representing institutional lending, development finance, hotel brokerage, destination marketing, and investment to examine the unprecedented challenges facing the hospitality sector and, more importantly, how the industry could emerge stronger.

Moderated by Adam Greenfader, Managing Partner of AG&T and Chair of the ULI Caribbean Council, the discussion featured:

  • Juan Corvinas Solans, Managing Director, Head of International Hotel Finance

  • Rogerio Basso, Head of Tourism, IDB Invest

  • Alexandra Lalos, hospitality investment professional

  • Christian Charre, Senior Vice President, CBRE Hotels

  • Brad Dean, CEO, Discover Puerto Rico

Rather than focusing solely on the immediate effects of COVID-19, the panel explored the deeper structural changes taking place across the hospitality industry and capital markets. The discussion provided valuable insights into lender responsibilities, investor behavior, hotel valuations, operational resilience, and the future of Caribbean tourism.

A Crisis Unlike Any Other

One of the central themes of the conversation was why COVID-19 differed fundamentally from the Global Financial Crisis of 2008–2009.

While both crises placed tremendous pressure on the hospitality industry, their underlying causes—and therefore the appropriate responses—were entirely different.

The Global Financial Crisis originated within the financial system itself. Excessive leverage, declining real estate values, and failures in the banking sector led to a widespread credit contraction. Liquidity evaporated, financing became scarce, and many otherwise viable projects were unable to refinance their debt. Banks faced solvency concerns, and distressed asset sales became commonplace as lenders worked through troubled portfolios.

COVID-19 presented an entirely different challenge.

Hotels did not fail because of poor underwriting or excessive leverage. In many cases, they entered 2020 with healthy balance sheets, strong occupancies, and positive cash flow. Instead, the pandemic abruptly halted global travel through government-imposed restrictions and public health measures. Demand disappeared almost overnight, not because travelers had lost interest in tourism, but because they simply could not travel.

This distinction fundamentally changed the role of financial institutions.

The Responsibility of Lenders During Extraordinary Times

One of the most compelling discussions centered on the responsibilities of lenders during a crisis that was not caused by borrowers.

Panelists emphasized that traditional loan enforcement strategies would not serve either lenders or borrowers under these unprecedented circumstances.

Instead, many financial institutions adopted a collaborative approach that focused on preserving long-term asset value rather than maximizing short-term recoveries.

Throughout the Caribbean and internationally, lenders worked closely with hotel owners to provide temporary payment deferrals, covenant waivers, loan modifications, maturity extensions, and other restructuring solutions designed to bridge the industry through the temporary disruption.

This represented a significant evolution in lender philosophy.

Rather than forcing widespread foreclosures, financial institutions recognized that preserving high-quality hospitality assets would ultimately benefit borrowers, lenders, investors, employees, and local economies alike.

The discussion highlighted an important lesson from the Global Financial Crisis: unnecessary liquidations often destroy long-term value. In contrast, patience and partnership can preserve both businesses and communities during periods of extraordinary uncertainty.

Capital Never Left the Market

Another important takeaway was that while travel had stopped, investment capital had not.

Institutional investors, private equity firms, family offices, sovereign wealth funds, and hospitality-focused lenders continued to study the market throughout the pandemic.

Many viewed the crisis as a temporary interruption rather than a permanent impairment of Caribbean tourism.

The panel discussed how sophisticated investors were actively preparing for recovery by evaluating acquisition opportunities, recapitalizations, refinancing transactions, and development sites well before travel resumed.

This confidence reflected the industry’s belief that the Caribbean’s long-term fundamentals remained intact:

  • World-class tourism destinations

  • Limited beachfront supply

  • Strong luxury demand

  • Growing interest in wellness and experiential travel

  • Continued expansion by international hotel brands

  • Attractive long-term demographic trends

As history has shown, many of these investors were well positioned to participate in one of the strongest tourism recoveries in the world.

The Evolution of Hotel Finance

The conversation also explored how financing structures were evolving.

Lenders increasingly emphasized sponsor quality, operational expertise, liquidity, and business continuity planning alongside traditional underwriting metrics.

Hotel operators were expected to demonstrate greater flexibility in managing costs, staffing, technology adoption, and guest experience.

Developers likewise began integrating resilient design, sustainability, wellness amenities, and mixed-use programming into new projects, recognizing that these features would become increasingly important to both guests and capital providers.

The pandemic accelerated trends that were already reshaping hospitality finance.

A More Sophisticated Investment Environment

Rogerio Basso provided valuable insights into the role of development finance institutions in supporting tourism throughout Latin America and the Caribbean.

Unlike traditional commercial lenders, multilateral development banks often provide patient capital that can continue flowing during periods of market uncertainty. Their participation not only supplies financing but also reinforces investor confidence, promotes sustainable development, and encourages higher environmental and governance standards.

Christian Charre shared perspectives from the hotel transaction market, illustrating how valuation methodologies were adapting in response to temporary operating disruptions. Rather than relying solely on current cash flow, investors increasingly focused on normalized performance and long-term replacement value.

Brad Dean discussed the remarkable resilience of travel demand and emphasized that tourism remained one of the world’s most powerful economic engines. While the pandemic temporarily interrupted mobility, the human desire to travel, connect, and experience new destinations remained fundamentally unchanged.

Looking Back

Several years later, many of the observations shared during this discussion proved remarkably accurate.

The Caribbean experienced one of the fastest tourism recoveries globally. Hotel occupancies rebounded, average daily rates reached record levels in many destinations, institutional investment returned, branded residences flourished, and major international hotel companies accelerated expansion throughout the region.

Perhaps most importantly, the industry demonstrated that collaboration among lenders, investors, operators, governments, and development institutions could preserve long-term value even during periods of extraordinary disruption.

AG&T’s Commitment to Caribbean Thought Leadership

The State of the Caribbean Marketplace webinar reflected AG&T’s broader commitment to advancing meaningful conversations about the future of Caribbean real estate and hospitality.

Through its leadership within the Urban Land Institute Caribbean Council, collaborations with industry organizations, and partnerships with public and private sector leaders, AG&T has consistently created forums where investors, lenders, developers, hotel operators, policymakers, and academics can exchange ideas and shape the future of the region.

The conversation was never simply about surviving the pandemic.

It was about understanding how crises reshape industries, how responsible lending preserves markets, and how thoughtful leadership can position Caribbean hospitality not merely for recovery, but for long-term growth.

The lessons remain just as relevant today. Strong destinations are built not only through exceptional hotels and visionary developments, but through resilient financial systems, collaborative partnerships, and leaders willing to think beyond the next business cycle.

Could this be the year for Puerto Rico?

Adam Greenfader
 
 

Could this be the year for Puerto Rico?

 

It had been almost 12 months since my last visit to Puerto Rico. Thanks to the COVID lockdown expectations were low. The last time I visited, more than 2 years after hurricanes Irma and Maria, the devastation was still overwhelming.  Streets were lined with garbage, electrical lines in disrepair, and thousands of homes had roofs covered in blue tarps. This combined with more than ten years of economic recession made has made Puerto Rico extremely pessimistic. As I landed in Luis Munoz Marin Airport, I was thinking,  “Would the ensuing earthquakes and COVID pandemic ravage the economy even more…”

 

I travelled the entire island from coast to coast –  100 x 35 miles, in a two week period. I drove from San Juan to Aguadilla, Mayaguez, Ponce, Humacao, Fajardo, and Ocean Park.  The roads were in good condition, the street lights working, and many buildings newly painted.  Notwithstanding the COVID crisis, the economy was bustling.  Most palpable was the positive attitude and feeling of the people. I spoke with many colleagues and friends and was told that much of the hurricane insurance had circulated through the economy.  The 8-12 billion in Federal relief from CDBG-DR is expected by early 2021.  Homemade signs seeking construction workers can be seen throughout the island that read, “Se Solicita Carpinteros y Albanilles”.

While the tourists were clearly absent ‘en mass’, a handful of new boutique hotels, especially in San Juan, have been recently delivered between 2019-2020. Much of this new hotel activity is due in part to the Tourism Tax Incentive. The tax incentive provides up to 40% of the total project’s cost back to sponsors…incredibly, some of it can be used for funding as part of the initial capital stack.  While this is not common anywhere in the world, Puerto Rico’s is not a typical Caribbean destination. The total economic activity (GDP) in Puerto Rico is less than 7% for all tourism related activities.  This includes, hotels, trades, conventions, excursions, etc..   This is an astonishing low number for an island that is surrounded by warm water, beautiful beaches, and lush landscapes. Read more about why Puerto Rico is like this at: https://agandt.com/contact-why-puerto-rico-now/

These tax incentives combined with a team of dedicated individuals in the Destination Marketing Organization (DMO) –  Discover Puerto Rico and other Public Private Partnerships (Invest Puerto Rico) is helping to make Puerto Rico a thriving tourism destination. The island currently boats some of the top hotels in the Caribbean with ADR’s over $1,500 per night.  Much of this demand is generated by the Act 20/22 (now Act 60).  For the last five years, hundreds of high net worth US individuals have moved to Puerto Rico to take advantage of zero Federal capital gains.  Act 60 has resulted in over 500 families and hundreds of new business moving to Puerto Rico.  There seems to be no end in sight for these new Americans living in Puerto Rico.  

Dorado Beach

This week Puerto Rico also inaugurated for the first time in over 20 years, the same political party. The PNP or US Statehood party won the election with a mandate for political stability, reduced corruption, and closer ties with the United States. While the island’s economic crisis is far from over, the COVID pandemic has put Puerto Rico back in the spotlight for its manufacturing proficiency. The island of Puerto Rico is one of the world’s leading pharmaceutical destinations – producing more than the top 5 US States combined. As thousands of jobs come back to the USA-Puerto Rico, invariably many will end up where the cost of labor is 15% less expensive, and there is a 60 year culture of robust manufacturing.

 

So is this the year for Puerto Rico?  Strong yes if you are involved with affordable housing, luxury resorts, alternative energy and critical manufacturing.

While we at AG&T do not have the proverbial ‘crystal ball’ on the island’s long term economic growth, things feel like they are on the right track and we will have more clarity with the resolution to the island’s bond crisis, the electrical authority privatization (AEE), and the completion of the responsibilities of The Fiscal Oversight and Managemnt Board for Puerto Rico. 

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 

Critical Manufacturing and Puerto Rico USA

Luis Fortuno and Congresswoman Jennifer Gonzalez

¨.

The panelists :

 

 

 

The ULI Webinar has an incredible array of information crammed into 90 minutes and it gives a great snapshot for the many initiatives being introduced and planned to help the Puerto Rican economy and create more quality jobs. If I had to some it up in three words, Mo is back. Mo of course being momentum.

 Each of the speakers brought a different perspective. Congresswoman Gonzalez Colon noted her primary mission is the reconstruction of the Island and to shephard the many supporting bills recently introduced in the US Congress. Former Governor Luis Fortuno brought an informed Wash DC think tank perspective, Adam Greenfader is one of Puerto Rico´s most passionate advocates, Andy Carlson of JLL (Jones Lang LaSalle) brings experienced commercial  insights from the world´s second largest public brokerage firm, Dr Deusch stated his case for the reasons he brought his Swiss/German manufacturing business to Puerto Rico because of a need for precision and reliability, while Noel Zamot has a finger on the ethical pulse of developing new business in Puerto Rico.

The conversations were upbeat and positive. For instance, Congresswoman Colon made a presentation on MMEDS which was introduced last month to Congress under the bill H.R. 7527. This bill provides tax incentives and tax credits for companies creating manufacturing plants and jobs in economically distressed areas in the US and its territories. The criteria for distressed is even stricter than the recent Opportunity Zone legislation passed in late 2017. When the Congresswoman showed the MMEDS qualifying maps there were smaller areas in very non desirable locations in the US whereas Puerto Rico literally had a much larger proportional area in some desirable locations. And she stated very clearly that MMEDS is one of the very few legislative items that is drawing bi-partisan support from both sides of the aisle.

The entire panel then weighed in on the competitive advantages that Puerto Rico has when competing with the mainland U.S. including much lower labor costs by as much as 60% lower in some cases, an experienced manufacturing labor force going back 100 years, the University of Puerto Rico at Mayaguez which is a top 10% engineering school for the entire U.S. and which is very much geared to provide the engineering and chemistry talent to support Puerto Rico´s manufacturing base. That even today five of the top ten selling drugs internationally are produced in Puerto Rico and 12 of the top 20 pharmaceutical companies have plants in Puerto Rico. Luis Fortuno noted that Puerto Rico had more than $40 billion USD in pharmaceutical exports in 2019 but has the capacity to increase this substantially. The panel noted that some closed down plants are almost in turnkey conditions should manufacturers wish to return or expand capacity. It would not take much. Maybe a recession of the Jones Act, or at least an exemption for an extended period of time, might be the necessary catalyst. There are some interesting new developments on this front as was evidenced last week by Hawaii noting that 85% of their informed populace is all for rescinding the Jones Act as it costs that Island 1.2 billion USD in additional transportation and cost of goods fees.

Progress is being made on seeking some type of exemption under the taxing provisions of GILTI as it adds a 10%+ tax on profits for CFCs (controlled foreign corporations) which unfortunately applies to the US territories since the do not fall under the IRC (Internal Revenue Code). On May 1, 2020, Congresswoman Stacey E. Plasket, representing the US Virgin Islands, filed Bill HR 6648 – the Territorial Economic Recovery Act, that if becomes law, it will exclude our territories from much or all of the GILTI taxation, under certain provisions.

On April 3, 2020, Congresswoman Jennifer González, resident Commissioner for Puerto Rico, introduced Bill HR 6643, the Securing National Supply Chain Act of 2020, to provide various tax credits to Economically Distressed Zones, including a tax credit on the amount of wages paid by an employer to employees in such a zone. The proposal has some overlap with HR 7527 noted above.

President Trump’s Special Representative for Puerto Rico’s Disaster Recovery,  Rear Admiral Peter Brown, lead two delegations to Puerto Rico in August 2020, the last visit being last week. I am told the trip was very successful as a big priority was to visit and understand the many advantages of pharmaceutical manufacturing in Puerto Rico.  AG&T is committed to bringing our network top information and access to our industry’s leaders. 

 

Investing Through Uncertainty: Institutional Capital’s View of Caribbean Hospitality During COVID-19

Investing Through Uncertainty: Institutional Capital's View of Caribbean Hospitality During COVID-19

 

At the height of the COVID-19 pandemic, uncertainty gripped the global hospitality industry.

Hotels throughout the Caribbean stood nearly empty. International travel had come to an unprecedented halt. Lenders were reassessing risk, investment activity had slowed dramatically, and developers around the world were asking the same question:

What does the future of hospitality look like?

To help answer that question, AG&T and the Urban Land Institute (ULI) Caribbean Roundtable hosted a timely conversation with Nicholas Hecker, Executive Managing Director and Chief Investment Officer of Sculptor Real Estate, moderated by Adam Greenfader, Chairman of AG&T and former Chair of the ULI Caribbean Council.

The discussion provided a rare institutional perspective during one of the most uncertain periods the hospitality industry had ever experienced.

Looking Beyond the Crisis

While much of the industry focused on immediate operational challenges, the conversation explored a much broader question:

How do long-term institutional investors evaluate hospitality during periods of extreme uncertainty?

Nicholas Hecker shared insights into how sophisticated investment managers distinguish between short-term market disruption and long-term value creation. Rather than reacting solely to the immediate crisis, institutional investors continued to evaluate demographic trends, destination quality, replacement costs, barriers to entry, and the long-term fundamentals supporting hospitality investment.

The message was clear.

The pandemic represented an extraordinary disruption—but not the end of the hospitality industry.

Confidence in Caribbean Hospitality

The Caribbean entered the pandemic with some of the strongest tourism fundamentals in the world.

Exceptional natural assets, limited beachfront supply, growing global demand for experiential travel, and proximity to North American markets continued to make the region attractive from a long-term investment perspective.

The discussion emphasized that while transaction activity had slowed, high-quality destinations would likely recover first as travelers increasingly sought open-air environments, wellness experiences, and lower-density resort communities.

Many of those observations proved remarkably accurate.

In the years that followed, the Caribbean experienced record tourism recovery, rising average daily room rates, increased luxury development, and renewed institutional investment.

Institutional Capital Today

Since that conversation, Sculptor Real Estate has continued to expand one of the world’s leading alternative real estate investment platforms.

Today, the firm has raised approximately $14.5 billion in capital across opportunistic equity, credit, and long-term investment strategies, with investments representing more than $30 billion in enterprise value across hospitality, resorts, gaming, marinas, specialty real estate, infrastructure, and other alternative asset classes.

The firm’s continued focus on experiential real estate reflects growing institutional confidence in sectors closely aligned with the Caribbean’s long-term strengths.

AG&T’s Commitment to Industry Leadership

One of AG&T’s objectives throughout the pandemic was to ensure that Caribbean developers, investors, lenders, and hospitality professionals remained connected to the world’s leading thinkers.

Rather than allowing uncertainty to halt the conversation, AG&T organized a series of virtual discussions featuring executives from global investment firms, hotel brands, multilateral development banks, tourism organizations, lenders, and government agencies.

These conversations helped industry participants better understand how global capital was responding to unprecedented market conditions while providing valuable insights into the recovery that would eventually follow.

Looking Back

Viewed today, this discussion serves as an important historical snapshot. It captured institutional thinking at one of the most uncertain moments in modern hospitality history.

More importantly, it demonstrated that experienced investors were already looking beyond the immediate crisis and focusing on the long-term fundamentals that continue to drive Caribbean tourism today.

For AG&T, the conversation reinforced a principle that has guided our work for more than three decades:  Markets experience cycles. Hospitality evolves. Capital adapts.

But exceptional destinations supported by thoughtful planning, resilient infrastructure, and long-term vision continue to attract investment.

The Caribbean’s recovery over the past several years has validated that perspective—and positioned the region for a new generation of hospitality investment.

Caribbean Banking Leadership During the COVID-19 Pandemic

Isabel de Caires

Caribbean Banking Leadership During the COVID-19 Pandemic

 

During the unprecedented disruption of the COVID-19 pandemic, Caribbean financial institutions faced one of the most significant challenges in their history. With tourism at a standstill, hospitality assets under pressure, and uncertainty across virtually every sector of the regional economy, banks were required to move beyond traditional lending practices and work collaboratively with borrowers to preserve long-term value.

In this exclusive interview, Isabel de Caires of FirstCaribbean International Bank shares how regional lenders responded during the crisis, implementing payment deferrals, restructuring loans, reducing costs, and working alongside clients to help businesses navigate an extraordinary period of uncertainty.

One of the most important lessons from the pandemic was the willingness of Caribbean banks to cooperate—not only with borrowers, but with one another and with governments—to maintain financial stability across the region. That collaborative approach helped many projects survive a period that few could have anticipated.

For AG&T, these conversations reinforced the importance of maintaining strong relationships throughout the Caribbean banking community. Over more than three decades, we have worked closely with regional and international financial institutions, giving our clients valuable insight into evolving lending practices, capital markets, and financing strategies across multiple jurisdictions.

Whether structuring development financing, introducing lending partners, or advising on capital formation, AG&T’s longstanding relationships with Caribbean financial institutions provide clients with access to market intelligence that extends well beyond individual transactions.

Watch the interview with Isabel de Caires to learn how Caribbean banks responded during one of the region’s most challenging periods and how those lessons continue to influence lending and development today.

 

Are Hotels Coming Back to The Caribbean?

Are Hotels Comming Back Caribbean

The Future of Caribbean Hospitality: Are Hotels Coming Back?

The COVID-19 pandemic brought the global hospitality industry to an unprecedented standstill. International travel halted almost overnight, hotel occupancies reached historic lows, and owners, operators, lenders, and investors were forced to rethink nearly every aspect of the business. For the Caribbean—a region where tourism is one of the primary drivers of economic growth—the stakes could not have been higher.

Recognizing the need for informed dialogue during this period of uncertainty, AG&T partnered with the Urban Land Institute (ULI) Caribbean Council to convene some of the hospitality industry’s most respected leaders for an important discussion: “Are Hotels Coming Back to the Caribbean?”

The objective was not simply to forecast a recovery, but to examine how the hospitality industry was adapting, where capital was flowing, and what opportunities would emerge as travel eventually returned.

The panel brought together an exceptional group of industry leaders representing every major segment of the hospitality ecosystem:

  • Adam Greenfader, Managing Partner, AG&T

  • Alejandro Zozaya, Executive Chairman, Apple Leisure Group

  • Christian Charre, Senior Vice President, CBRE Hotels

  • Chris Cylke, Chief Operating Officer, REVPAR International

  • Nicholas Hecker, Executive Managing Director & Chief Investment Officer, Sculptor Real Estate

Together, the panel offered perspectives from development, hotel operations, institutional investment, brokerage, valuation, and lending—providing one of the most comprehensive discussions on the future of Caribbean hospitality during one of the industry’s most challenging periods.

 

Three Questions That Defined the Recovery

 

1. What hotel transactions were taking place during the pandemic?

While many investors initially adopted a wait-and-see approach, the panel observed that sophisticated capital was already positioning itself for the recovery. Institutional investors, private equity firms, and opportunity funds were actively evaluating distressed assets, recapitalizations, and long-term acquisition opportunities throughout the Caribbean.

Rather than signaling a collapse in the hospitality sector, transaction activity reflected a repricing of risk and the belief that Caribbean tourism fundamentals would ultimately remain strong.

2. Would the industry experience widespread defaults, acquisitions, and repurposing?

The discussion acknowledged that financial stress was inevitable across portions of the market. However, the panel emphasized that not every hotel would face the same outcome.

Well-capitalized owners, strong brands, and institutional-quality assets were expected to recover more quickly, while other properties would require recapitalization, repositioning, or new ownership. Some hotels would be converted to alternative uses, while others would emerge stronger through strategic renovations and operational improvements.

History has since shown that many of these observations proved remarkably accurate. Although select assets changed hands, the Caribbean avoided the wave of distressed sales that many had feared, as tourism rebounded faster than most analysts had predicted.

3. How was the hospitality industry preparing for Travel 2.0?

Perhaps the most forward-looking conversation centered on how hotels would evolve beyond the pandemic.

Panelists discussed enhanced health and safety standards, contactless technologies, digital guest experiences, flexible operating models, wellness programming, outdoor amenities, sustainability initiatives, and changing traveler expectations.

The consensus was clear: recovery would not simply mean reopening hotels. It would require reimagining the guest experience.

Many of those innovations—from mobile check-in and wellness-focused programming to experiential travel and flexible resort design—have since become permanent features of the hospitality landscape.

 

A Defining Moment for Caribbean Hospitality

Looking back, this conversation represented more than a discussion about surviving a crisis. It marked the beginning of a broader conversation about the future of Caribbean tourism.

The region has since experienced one of the strongest tourism recoveries in the world. Visitor arrivals have surpassed pre-pandemic levels in many destinations, international hotel brands continue expanding throughout the Caribbean, branded residences have become one of the fastest-growing hospitality segments, and institutional capital has returned with renewed confidence.

The long-term fundamentals discussed during the panel—limited beachfront supply, strong leisure demand, expanding luxury travel, and the Caribbean’s enduring global appeal—have continued to support investment throughout the region.

AG&T’s Commitment to Industry Leadership

At AG&T, we believe our role extends beyond advising development projects.

For more than three decades, we have worked to convene conversations that bring together investors, developers, hotel operators, lenders, government officials, and industry organizations to address the opportunities and challenges shaping Caribbean real estate and hospitality.

Through our partnerships with the Urban Land Institute, Bisnow, the Puerto Rico Builders Association, universities, and other industry organizations, AG&T has helped create forums where ideas become strategies and relationships become investments.

The discussion, Are Hotels Coming Back to the Caribbean?, reflected that commitment.

It demonstrated that meaningful leadership is not only about responding to change—it is about helping define what comes next.

As Caribbean hospitality continues to evolve, AG&T remains committed to fostering the dialogue, partnerships, and investment strategies that will shape the region’s next generation of world-class destinations.

Hospitality Innovation in Times of Crisis: Lessons from IDB Invest and the Future of Caribbean Tourism

Rogerio Bass

Hospitality Innovation in Times of Crisis: Lessons from IDB Invest and the Future of Caribbean Tourism

Hospitality Innovation in Times of Crisis: Lessons from IDB Invest and the Future of Caribbean Tourism

As the COVID-19 pandemic swept across the globe, few industries were impacted more dramatically than hospitality and tourism. Borders closed, airlines grounded fleets, conferences were canceled, and hotels that once operated at record occupancies suddenly found themselves with little to no demand.

For Latin America and the Caribbean—regions where tourism serves as a critical engine of economic growth, employment, and foreign investment—the implications were profound.

To better understand the challenges facing the industry and the opportunities that could emerge from the crisis, the Urban Land Institute Caribbean Council hosted a conversation between Rogerio Basso, Head of Tourism at IDB Invest, and Adam Greenfader, Chair of the ULI Caribbean Council and Managing Partner of AG&T.

While much of the discussion focused on the immediate impact of the pandemic, the conversation ultimately became a broader examination of innovation, leadership, capital markets, and the future evolution of hotel management throughout Latin America and the Caribbean.

The Tourism Industry Before COVID-19

Before the pandemic, hospitality was experiencing one of the strongest periods in its history.

Global travel demand continued to expand, international tourism arrivals were reaching record levels, and investors remained highly attracted to hospitality assets throughout the Caribbean and Latin America. Major hotel brands were expanding aggressively, new resort developments were under construction, and institutional capital was increasingly targeting hospitality as a long-term growth sector.

Destinations throughout the Caribbean benefited from growing airlift, rising visitor expenditures, and increasing demand for experiential travel, wellness tourism, luxury resorts, and branded residential products.

According to Rogerio Basso, the industry’s fundamentals entering 2020 were exceptionally strong.

What followed was not a traditional economic downturn or cyclical correction. It was a sudden and complete interruption of global mobility.

Why This Crisis Was Different

The hospitality industry has weathered numerous crises over the past several decades, including recessions, geopolitical conflicts, natural disasters, and health emergencies.

COVID-19 was fundamentally different.

Unlike previous downturns that impacted specific regions or market segments, the pandemic affected virtually every tourism destination simultaneously. Hotels were not competing for reduced demand; in many cases, demand simply disappeared.

For owners and operators, the challenge was unprecedented. Revenue declined almost immediately while many fixed costs remained. Management teams were forced to make difficult decisions regarding staffing, operations, capital expenditures, and long-term strategy.

Yet amid the disruption, Rogerio emphasized that hospitality leaders could not simply focus on survival. They also needed to prepare for recovery.

Innovation as a Competitive Advantage

One of the most important themes that emerged during the discussion was the role of innovation in hotel management.

The pandemic accelerated trends that had already begun transforming hospitality, forcing operators to adopt new technologies and rethink traditional business models at a much faster pace.

Hotels across the region began implementing:

  • Contactless check-in and check-out systems

  • Mobile guest communication platforms

  • Digital concierge services

  • Enhanced health and sanitation protocols

  • Flexible staffing models

  • Advanced revenue management systems

  • Data-driven guest personalization

  • Hybrid meeting and conference capabilities

  • Expanded outdoor experiences and wellness programming

Many of these initiatives were initially introduced as crisis-response measures. However, they quickly evolved into permanent operational improvements that enhanced both efficiency and guest satisfaction.

The discussion highlighted an important reality: innovation is often accelerated during periods of disruption.

The hospitality companies that adapted fastest were frequently the ones best positioned to capture demand when travel resumed.

The Evolution of Hotel Management

Perhaps one of the most significant lessons from the pandemic was the changing role of hotel management itself.

Historically, hotel operators focused primarily on maximizing occupancy, controlling expenses, and maintaining service standards. Today’s hospitality leaders must balance a much broader range of responsibilities.

Modern hotel management increasingly requires expertise in:

  • Technology integration

  • Sustainability initiatives

  • Wellness programming

  • Community engagement

The panel discussed how successful operators would need to become more agile, more data-driven, and more responsive to changing guest expectations than ever before.

Hotels are no longer simply places to stay. They are becoming platforms that integrate hospitality, wellness, residential living, experiences, technology, and community.

This transformation is particularly relevant in the Caribbean, where travelers increasingly seek authentic experiences, environmental stewardship, cultural immersion, and personalized service.

The Role of Multilateral Development Banks

A unique aspect of the discussion focused on the role of multilateral development banks (MDBs) in supporting tourism and hospitality during times of crisis.

As Head of Tourism at IDB Invest, Rogerio Basso oversees initiatives that provide financing solutions throughout Latin America and the Caribbean. These include debt, mezzanine financing, equity investments, and other instruments designed to support sustainable development.

Multilateral institutions play a critical role because they often provide patient capital during periods when traditional financing becomes scarce.

Beyond capital, organizations such as IDB Invest contribute technical expertise, environmental standards, governance frameworks, sustainability initiatives, and strategic guidance that strengthen projects over the long term.

The discussion emphasized that recovery would require collaboration among governments, hotel operators, developers, lenders, investors, and development finance institutions.

No single stakeholder could solve the challenges alone.

Three Strategic Actions for Hospitality Leaders

Rogerio outlined several priorities that hospitality companies should consider when navigating periods of uncertainty:

1. Preserve Liquidity

Cash management becomes paramount during periods of disruption. Organizations must maintain financial flexibility to withstand market volatility while preserving their ability to invest when opportunities emerge.

2. Continue Investing in Innovation

The temptation during a crisis is to cut spending across all areas. However, technology, operational improvements, and guest experience enhancements often generate long-term competitive advantages that outlast the crisis itself.

3. Focus on Long-Term Demand Drivers

While short-term conditions may fluctuate, the fundamental drivers of tourism—human connection, exploration, business travel, leisure experiences, and cultural exchange—remain intact.

The strongest organizations maintain a long-term perspective even during periods of uncertainty.

Looking Back: From Crisis to Transformation

Several years later, many of the observations discussed during this ULI Caribbean Conversation proved remarkably accurate.

Tourism throughout the Caribbean and Latin America rebounded faster than many analysts expected. Luxury travel accelerated. Wellness tourism expanded. Branded residences became one of the industry’s fastest-growing segments. Technology adoption increased dramatically. Investors returned to the sector with renewed confidence.

Most importantly, hospitality emerged stronger, more resilient, and more innovative than before.

AG&T’s Commitment to Hospitality Thought Leadership

At AG&T, we believe that some of the most important conversations occur during periods of uncertainty. Throughout the pandemic and beyond, we partnered with the Urban Land Institute Caribbean Council to bring together industry leaders, investors, developers, hotel operators, economists, and policymakers to discuss the future of Caribbean real estate and hospitality.

Our conversation with Rogerio Basso was more than a discussion about crisis management. It was a dialogue about leadership, innovation, and the future of tourism in Latin America and the Caribbean. The lessons remain relevant today.

Hospitality is no longer defined solely by buildings, brands, or locations. It is increasingly defined by adaptability, technology, sustainability, and the ability to create meaningful experiences for guests. As the Caribbean continues its hospitality renaissance, innovation in hotel management will remain one of the most powerful drivers of long-term success. At AG&T, we remain committed to advancing the conversations that help shape that future.

Caribbean Hospitality After COVID: Reimagining Travel for a New Era

Headshot of Brad Dean

Caribbean Hospitality After COVID: Reimagining Travel for a New Era

In the spring of 2020, the global hospitality industry came to an abrupt halt.

Borders closed. Airlines grounded their fleets. Cruise ships sat idle. Hotels that had welcomed guests for generations suddenly stood empty. For a region where tourism represents one of the largest contributors to GDP, employment, and foreign investment, the uncertainty was unlike anything the Caribbean had ever experienced.

While much of the industry focused on managing the immediate crisis, AG&T believed it was equally important to begin asking a different question:

What would Caribbean hospitality look like after COVID?

To help answer that question, AG&T partnered with the Urban Land Institute Caribbean Council to launch a series of thought leadership conversations featuring many of the region’s leading voices in tourism, finance, hospitality, manufacturing, and economic development.

One of the most memorable discussions featured Brad Dean, then CEO of Discover Puerto Rico, Puerto Rico’s Destination Marketing Organization.

Rather than focusing solely on the challenges of the pandemic, the conversation explored how the industry could emerge stronger, more resilient, and better prepared for the future.

Brad Dean offered a perspective that has become increasingly relevant in the years since.

“This downtime gives the travel industry our George Bailey moment. We have all seen that without travel it’s pretty ugly. There is far greater value to travel than most of us ever realized. Travel lifts spirits. It connects people. It leads to progress.”

Those words resonated deeply throughout the Caribbean.

Travel is more than hotel occupancy or airline arrivals. It supports small businesses, restaurants, taxi drivers, artisans, tour operators, construction workers, architects, engineers, farmers, entertainers, and countless entrepreneurs whose livelihoods depend upon a vibrant visitor economy.

The pandemic reminded us that hospitality is not simply an industry—it is an ecosystem.

Creating Dialogue During Uncertainty

Throughout the pandemic, AG&T recognized that one of the greatest needs facing the Caribbean was the exchange of ideas.

As uncertainty grew, we brought together leaders from government, international finance, hospitality, manufacturing, infrastructure, and development to discuss not only recovery, but the long-term future of the region.

These conversations explored topics including:

  • The future of Caribbean hospitality

  • Tourism recovery strategies

  • Public-private partnerships

  • Sustainable destination development

  • Capital markets and investment

  • Resilient infrastructure

  • Manufacturing and supply chains

  • Puerto Rico’s role within the U.S. economy

  • The evolution of luxury hospitality

The objective was never simply to host webinars.

It was to create a forum where industry leaders could share ideas, challenge conventional thinking, and help shape the future of Caribbean development.

From Recovery to Renaissance

Looking back, many of the themes discussed during those early conversations proved remarkably accurate.

The Caribbean has experienced one of the strongest tourism recoveries anywhere in the world. Puerto Rico has reached record visitation levels, international hospitality brands continue expanding throughout the region, luxury resort development has accelerated, and institutional investment has returned to Caribbean hospitality with renewed confidence.

Today’s hospitality industry is fundamentally different from the one that entered 2020.

Developers place greater emphasis on wellness, sustainability, outdoor experiences, resilient design, mixed-use destinations, branded residences, and authentic cultural experiences. Investors have also recognized that the Caribbean’s long-term fundamentals—including strong tourism demand, limited luxury inventory, and growing global interest in experiential travel—remain exceptionally compelling.

AG&T’s Commitment to Caribbean Thought Leadership

For AG&T, these conversations reflected our broader mission.

As a Caribbean real estate development and capital advisory firm, we believe that leadership means more than executing successful projects. It means creating opportunities for dialogue, sharing knowledge across markets, and connecting investors, developers, hospitality brands, government leaders, and financial institutions throughout the Caribbean and the mainland United States.

Whether through our work with the Urban Land Institute, partnerships with Bisnow, industry conferences, investor forums, or conversations with leaders such as Brad Dean, AG&T remains committed to advancing ideas that strengthen Caribbean hospitality and encourage long-term investment across the region.

The pandemic tested every assumption about travel.

It also reminded us why travel matters.

Because hospitality is ultimately about people—and the connections that bring communities, cultures, and economies together.

 

Manufacturing 2.0 with Manuel Laboy

Puerto Rico's Economic Transformation: A Conversation with Secretary Manuel Laboy

 Economic development is driven by leadership, vision, and the ability to anticipate where investment is heading.

 

In this exclusive interview, Manuel Laboy, then Secretary of the Puerto Rico Department of Economic Development and Commerce (DEDC), shares his vision for positioning Puerto Rico as one of the most competitive jurisdictions in the Americas for manufacturing, life sciences, logistics, and industrial investment.

Our discussion explores many of the initiatives that were reshaping Puerto Rico’s economy, including the expansion of pharmaceutical and medical device manufacturing, Opportunity Zones, public-private partnerships, tax incentives, infrastructure investment, and regulatory reforms designed to attract new private capital. Secretary Laboy also discusses the significance of new legislation affecting foreign cargo and why he viewed it as a potential game changer for the island’s long-term competitiveness.

For AG&T, interviews such as this are part of our ongoing commitment to understanding the policies, market dynamics, and public-sector initiatives that influence real estate and economic development throughout the Caribbean.

Our longstanding relationships with government leaders, institutional investors, developers, and financial institutions allow us to provide clients with perspectives that extend beyond individual transactions. By engaging directly with the people shaping economic policy, we help clients better understand the opportunities, challenges, and strategic direction of the markets in which they invest.

Whether advising on industrial development, mixed-use projects, hospitality, or large-scale investment opportunities, AG&T believes informed decisions begin with informed conversations.

Watch the interview with Secretary Manuel Laboy to gain insight into Puerto Rico’s economic development strategy and the policies that continue to influence investment across the island.