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.

The Elimination of Section 936

Zaida Feliciano Queens College

The repeal of Section 936 resulted in lost manufacturing jobs for the USA and a 15 year economic crisis for Puerto Rico. 

As we sit today in the middle of a world pandemic, a few things seem certain. COVID 19 is a health crisis that has forever changed our relationship with globalism. It is time for a new understanding of how manufacturing keeps us all safe. This is especially true of the pharmaceutical industry. With shortages of basic supplies, medicines and protective gear, is it time to bring critical manufacturing back to the United States?

In this AG&T Thought Leadership conversation, we speak with economics professor Zadia Feliciano (see bio)of Queens College and explore the consequences for the USA and Puerto Rico of eliminating the manufacturing tax incentives –  Section 936.

In her groundbreaking work on Section 936, entitled, “US Multinationals in Puerto Rico and the Repeal of Section 936 Tax Exemption for U.S. Corporations“, professor Feliciano and Andrew Green, “analyze the effects of the phase out and elimination of Section 936 on the number of establishments, value added, employment, and wages in Puerto Rico’s manufacturing.  

Unfortunately, the elimination of Section 936 helped push critical manufacturing AWAY from the USA. Critical manufacturing left Puerto Rico (USA) and  sought cheaper markets in Mexico, Ireland, Latin America and China.

Moving Forward.

The Food and Drug Administration has for some time been expressing concern that the United States is too dependent on China within the medical supply chain. Puerto Rico has 49 FDA-approved pharmaceutical plants in place, and produces not just one quarter of all U.S. pharmaceutical exports, but also significant amount of medical devices.

Puerto Rico’s manufacturing industry is in need of support, but is also in a position to blossom, similar to other areas of the country that used to have a strong manufacturing base. In the area of pharmaceuticals, Puerto Rico has the advantage of an educated workforce and many people experienced in the industry. Puerto Rico produces 25% of the pharmaceuticals exported by the United States. This is more than any State. The Island has the cold chain logistics for pharmaceuticals in place. The learning curve would be lower for Puerto Rico than for many other U.S. regions. The time to act is now.

To learn more about how Puerto Rico can help USA manufacturing. 

Puerto Rico’s Manufacturing Renaissance: Strengthening America’s Supply Chain

Luis Fortuno

Puerto Rico's Manufacturing Renaissance: Strengthening America's Supply Chain

About Luis Fortuño

Luis G. Fortuño is the former Governor of Puerto Rico (2009–2013) and one of the island’s leading voices on economic development, manufacturing, and public policy. Prior to serving as governor, he was Puerto Rico’s Resident Commissioner in the U.S. Congress, where he advocated for the island’s economic and federal priorities. Today, he is a partner at Steptoe LLP, advising multinational corporations, investors, and governments on public policy, international trade, infrastructure, energy, and economic development.

Throughout his career, Governor Fortuño has been a strong advocate for strengthening Puerto Rico’s role as a strategic manufacturing hub for the United States. His deep understanding of government policy, international business, and economic competitiveness offers valuable insight into how Puerto Rico can leverage its world-class pharmaceutical industry, highly skilled workforce, and U.S. legal framework to support the reshoring of critical manufacturing and build a more resilient American supply chain.

 Luis Fortuño, partner at Steptoe and Johnson (Governor of Puerto Rico 2009-2013), 

 

 

The COVID-19 pandemic fundamentally changed the way governments and businesses think about global supply chains.

For decades, manufacturers optimized production by moving operations to lower-cost jurisdictions around the world. The pandemic exposed the vulnerabilities of that model. Shortages of pharmaceuticals, medical devices, personal protective equipment, semiconductors, and other critical products demonstrated that efficiency alone could no longer be the primary objective. Resilience had become equally important.

Today, reshoring and nearshoring have become central components of U.S. industrial policy.

One question remains especially relevant:

What role can Puerto Rico play in rebuilding America’s manufacturing capacity?

That question was the focus of a conversation between Luis Fortuño, former Governor of Puerto Rico (2009–2013) and Partner at Steptoe LLP, and Adam Greenfader, Chairman of AG&T. Their discussion explored Puerto Rico’s unique position within the United States and why the island remains one of America’s most important strategic manufacturing platforms.

A Manufacturing Legacy

Puerto Rico’s manufacturing story began long before COVID-19.

Beginning with Operation Bootstrap in the late 1940s, Puerto Rico became one of the United States’ premier manufacturing hubs. Over the following decades, the island attracted many of the world’s leading pharmaceutical, biotechnology, medical device, aerospace, and advanced manufacturing companies.

At its peak, Puerto Rico produced a significant share of the pharmaceuticals consumed in the United States and became home to one of the highest concentrations of pharmaceutical manufacturing facilities anywhere in the world.

That industrial base continues to represent one of Puerto Rico’s greatest competitive advantages.

Why Puerto Rico Still Matters

Governor Fortuño emphasized that Puerto Rico possesses several unique characteristics that are difficult to replicate elsewhere.

First, the island already has an extensive network of FDA-approved manufacturing facilities, many of which can be expanded or modernized far more quickly than constructing entirely new plants.

Second, Puerto Rico has a highly skilled workforce with decades of experience in highly regulated industries including pharmaceuticals, biotechnology, life sciences, aerospace, and medical devices.

Third, the island’s universities—particularly the University of Puerto Rico at Mayagüez (RUM)—continue to produce outstanding engineers, scientists, and technology professionals who support many of the world’s leading manufacturers.

Combined with Puerto Rico’s status as a U.S. jurisdiction, these assets create a compelling environment for advanced manufacturing.

Lessons from the Past

The conversation also examined the factors that contributed to Puerto Rico’s manufacturing decline.

The expiration of Section 936, increased global competition, the implementation of NAFTA, and aggressive incentive programs offered by countries such as Ireland, Singapore, and China all encouraged manufacturers to relocate production.

At the same time, Puerto Rico faced economic recession, rising energy costs, fiscal challenges, and the devastating impacts of Hurricanes Irma and Maria.

Despite these setbacks, the island retained one of its greatest strengths—its manufacturing ecosystem.

The Reshoring Opportunity

The pandemic fundamentally altered how companies evaluate supply chains.

Today, resilience, geographic diversification, national security, and supply chain reliability have become strategic priorities.

Puerto Rico is uniquely positioned to benefit from these trends.

As a U.S. territory operating under the American legal, regulatory, and intellectual property framework, Puerto Rico offers manufacturers many of the advantages of domestic production while maintaining strategic proximity to major U.S. markets.

Rather than rebuilding manufacturing capacity from the ground up, many companies have the opportunity to leverage an existing industrial base supported by experienced workers, established infrastructure, and decades of operational expertise.

Policy and Investment

The discussion also addressed the importance of public policy in supporting Puerto Rico’s manufacturing future.

At the time, bipartisan legislation introduced by Resident Commissioner Jenniffer González-Colón, together with members of Congress, sought to strengthen America’s critical supply chains while recognizing Puerto Rico’s strategic role in national manufacturing.

Although specific legislation has evolved over time, the broader objective remains unchanged: strengthening domestic manufacturing capacity while reducing dependence on distant supply chains for essential products.

Looking Back

Viewed today, many of the observations made during this conversation proved remarkably accurate.

Reshoring has become a central objective of U.S. industrial policy.

Supply chain resilience now influences corporate site selection decisions.

Federal investment in advanced manufacturing has accelerated, and Puerto Rico continues to attract new interest from pharmaceutical, life sciences, medical technology, and advanced manufacturing companies seeking to expand production within the United States.

The conversation serves as an important reminder that Puerto Rico’s manufacturing potential did not begin with COVID-19—it simply became impossible to ignore.

AG&T’s Perspective

For more than three decades, AG&T has worked at the intersection of economic development, real estate, infrastructure, hospitality, and industrial investment throughout Puerto Rico and the Caribbean.

Our conversations with policymakers, industry leaders, investors, and manufacturers have consistently reinforced one conclusion: Puerto Rico’s future will be built upon a diversified economy. Puerto Rico is uniquely positioned not only to participate in America’s manufacturing renaissance, but to help lead it.

Mixed-use project delivers on wellness in Puerto Rico

 

 

 

 

AS PUBLISHED IN HOTEL BUSINESS  BY  ON

PONCE, PUERTO RICO—Ponce Paradise—a 900-acre resort, healthcare village and marina located here—is giving guests all the conveniences and amenities of mixed-use, but with a twist.

Adam Greenfader, managing partner, AG&T, the development firm behind Ponce Paradise, said, “There is a trend in hospitality development for travelers searching for a destination that offers a wellness package or amenities.”

Conceptualized by LandDesign and Winstanley Architects & Planners along with AG&T, the teams consulted engineering and aquatic architecture professionals to make the vision a reality, bringing together a mixed-use development and a wellness destination.

“Economies of scale seem to indicate mixed-use projects will be getting larger. The live-work-play concept is really taking hold as more people want to be in the center of it all,” Greenfader said.

Ponce Hospital and Wellness City

Still in its early design and community involvement phase, Ponce Paradise will comprise a hotel and spa, wellness community, farm-to-table agricultural setup, a micro-grid, residential neighborhoods, a town square and a university medical center, with a total investment of approximately $1 billion.

Specifically, the 166-acre Wellness City will have research, university and care facilities, which will include a branded hospital, rehabilitation centers, outpatient, recovery rooms, assisted living facilities, nursing home, short-term residential units and condominiums. The wellness lagoon will have restaurants and retail, and a plaza will be home to a worship center, park and entertainment venue. 

The development will not only promote health and wellness but sustainability as well. About 60% of the site is untouched and will remain in its natural state, according to the Puerto Rico Conservation Easement Law. Additionally, the developed area has acres of green space, waterways and parks.

“Wellness tourism has been estimated as a $563 billion industry in 2018,” Greenfader said. “Puerto Rico is ideally situated to capture a large part of this market due to its central location, airlift and cruise traffic, U.S. medical doctors and great infrastructure.

“There are many medical treatments that can be done in Puerto Rico for a fraction of the cost—and you get to enjoy an amazing Caribbean vacation experience,” he added.

There are, of course, some challenges. “Less than 7% of Puerto Rico’s GDP is tourism based. For a Caribbean island with great beaches, people and infrastructure, this in incredibly low. The city of Ponce, in particular, has a convention center, port and airport that are highly underutilized,” Greenfader said, highlighting the project’s necessity.

He said the first challenge is to get the Municipality of Ponce and the Fiscal Board controlled by the U.S. Congress to fully use its assets. The second challenge—which is common in any large mixed-use project—is to provide the right combination of uses.

“The last challenge is financing,” he said. “In Puerto Rico, there are $20 billion of Community Development Block Grants for Disaster Relief. We trust some of that will be allocated to critical projects such as Ponce Paradise.”

Following meetings with the municipality, major medical associations, cruise lines and community leaders—each with their own concerns—Greenfader is confident that they will be able to address each group while also honoring Ponce’s natural surroundings.

Master Plan for Wellness City and Hospital

 

“Our job as project sponsors is to balance the concerns of each group with the stewardship of the environment,” he said. “The project must make economic sense but also be a valuable contributor to the local region, protecting and enhancing natural assets.”

Greenfader said that as hospitality as a whole faces its own challenges, differentiators like mixed-use developments are gaining more momentum.

“Airbnb and other disruptors have proven that the market is changing and that guests are seeking new experiences. Budget allocations, the desire to be together in large groups and ease of booking a reservation are just a few reasons the hotel industry is adding more residential units,” he said.

According to Greenfader, residential space generates revenue that can assist with the financing capital stack, while also creating a rental pool of additional units for the high seasons.

Ponce Paradise plans to offer three residential options: single-family homes, smaller vacation rentals and affordable “shotgun-style” housing, all with their own facilities and security.

Its attention to health, however, is the real differentiator, with nature serving as both the basis for its design and Ponce Paradise’s mantra.

“Everyone realizes that wellness is holistic; we don’t just treat the physical but the whole mind, body and spirit,” Greenfader said. “Doctors know that a patient’s success rate is often a result of a positive mental attitude. A cold, sterile room doesn’t necessarily lend itself to great health. Great architecture, beautiful landscaping, water vistas, amazing smells, community, etc., can make the difference between success and failure in a person’s treatment.”

Wellness extends far beyond simple offerings here. “Doing yoga with goats may not prove to have ‘legs,’ but resort wellness has just begun to take off. The reasons are simple: Industrialized nations are getting older, people are living longer, and with two billion new tourists coming from India and China, there are many more potential people for this market niche,” he said. “Some experts say the wellness resort industry is expected to double within the next 20 years and become a $1-trillion industry.”

The sustainability factor is also attracting hoteliers, especially in an area that’s been struck by natural disasters.

“Developers are starting to realize that a weather-related crisis can have a devastating effect on operational risk,” he said. “If a hotel cannot withstand hurricane-force winds, floods and mold, then it will suffer huge downtimes and repairs. In fact, hotels may not ever come back online at all.”

Greenfader said that hotel buyers are now evaluating their portfolios for climate risk and realizing that initially spending 15-20% more in construction costs to make a project resilient and sustainable makes good business sense.

“Developers also realize that if they can stay open during a crisis, their occupancy will be 100% or more,” Greenfader said. “During a relief and rebuilding period, hotels host thousands of relief workers, insurance adjusters and other critical workers. It’s a win-win to be resilient and sustainable.”

This couldn’t be more clear than at the current time, when Puerto Rico is beginning to recover from a series of earthquakes, which Greenfader noted had hit the south particularly hard—especially structures built before 1990, when codes were updated to bolster construction for seismic activity.

“The earthquake reaffirms that a project like Ponce Paradise needs to build a resilient infrastructure into its master plan and be forward-looking in its design,” he said. HB

From the Netherlands to the Caribbean: Rethinking Climate Resilience for Island Communities

ULI Roundtable on Climate Resilience in The Netherlands

From the Netherlands to the Caribbean: Rethinking Climate Resilience for Island Communities

 

Climate resilience is no longer simply an environmental discussion.

It has become one of the defining economic and development challenges of the 21st century. For island nations throughout the Caribbean, climate adaptation influences everything from infrastructure investment and insurance costs to tourism, housing, transportation, energy, and long-term economic competitiveness.

Recognizing these challenges, Adam Greenfader with the Urban Land Institute (ULI) convened an international Climate Resilience Roundtable in the Netherlands, bringing together planners, architects, engineers, financial institutions, developers, investors, and public-sector leaders to explore how some of the world’s most climate-resilient communities can help shape the future of Caribbean development.

The discussion was particularly timely following the devastating impacts of Hurricanes Irma and Maria in 2017 and Hurricane Dorian in the Bahamas in 2019. These events highlighted the urgent need to move beyond disaster recovery and begin designing communities capable of withstanding the increasing impacts of climate change.

Learning from the Dutch

Few countries understand the relationship between water and urban development better than the Netherlands.

For more than a thousand years, the Dutch have designed cities, infrastructure, and landscapes that coexist with water rather than simply attempting to control it. Their expertise in flood management, adaptive urban planning, coastal engineering, and integrated water systems has become a global model for climate resilience.

Rather than viewing resilience as an additional cost, the Dutch approach recognizes it as a long-term investment—one that protects communities, reduces future losses, and creates stronger, more valuable places to live and invest.

As Caribbean nations confront rising sea levels, stronger storms, coastal erosion, and aging infrastructure, these lessons have become increasingly relevant.

Sharing Caribbean Experience

Representing the Caribbean perspective, Adam Greenfader, then Chair of the ULI Southeast Florida/Caribbean Council and Chairman of AG&T, shared lessons learned from the ULI Advisory Services Panel for the Municipality of Toa Baja, Puerto Rico.

The multidisciplinary panel examined how one of Puerto Rico’s most vulnerable municipalities could rebuild after Hurricane Maria while improving long-term resilience, strengthening economic opportunity, and reducing future climate risks.

Rather than focusing solely on reconstruction, the discussion emphasized creating communities that are stronger than those that existed before the storm.

This philosophy—often described as “building back better”—has since become a guiding principle for resilient development worldwide.

A Global Perspective

Joining the discussion was Henk Ovink, the Netherlands’ Special Envoy for International Water Affairs and one of the world’s foremost experts on climate adaptation and water management. Mr. Ovink discussed how climate resilience requires integrated thinking across government, infrastructure, finance, urban planning, and community engagement.

His work through initiatives such as Rebuild by Design, the Global Center on Adaptation, and Water as Leverage has demonstrated that resilience is most successful when architects, engineers, investors, policymakers, scientists, and local communities collaborate from the earliest stages of planning.

The message was clear:  Resilience cannot be added at the end of a project.

It must become part of the project’s DNA.

 

From Recovery to Regeneration

One of the most important themes of the roundtable was the distinction between recovery and regeneration.

Recovery seeks to restore what existed before.

Regeneration asks a more ambitious question:

How can we rebuild communities that are stronger, safer, more sustainable, and better prepared for future generations?

That philosophy extends far beyond engineering.

It includes resilient housing, renewable energy, modern infrastructure, nature-based solutions, flood management, resilient tourism, environmental restoration, and economic diversification.

Increasingly, these principles are also influencing investment decisions.

Why This Matters Today

Since this discussion took place, climate resilience has become one of the most important considerations in global real estate and infrastructure investment.

Institutional investors now routinely evaluate climate risk alongside traditional financial metrics.

Insurance markets increasingly reward resilient design.

Hotels, resorts, airports, ports, hospitals, and mixed-use developments are incorporating resilience into their planning from the earliest stages.

For the Caribbean, resilience is no longer simply about protecting communities.

It has become a competitive advantage.

Destinations that invest in resilient infrastructure, sustainable development, renewable energy, and climate adaptation will be better positioned to attract tourism, institutional capital, and long-term economic growth.

AG&T’s Perspective

For more than three decades, AG&T has viewed resilience as an essential component of responsible development throughout the Caribbean.

Whether advising hospitality projects, master-planned communities, infrastructure initiatives, or economic development strategies, we believe resilience should not be treated as a regulatory requirement or a marketing slogan.

It is an investment strategy. Projects that are thoughtfully designed to withstand climate risk, reduce operating costs, protect natural systems, and enhance community well-being create stronger long-term value for investors, residents, and governments alike.

The conversations held in the Netherlands reinforced an important principle that continues to guide our work today: The Caribbean has the opportunity not simply to recover from climate change—but to become a global leader in resilient, regenerative development.

By combining local knowledge with international best practices, we can create island communities that are stronger, more sustainable, and more prosperous for generations to come.

 

      Some of the works discussed:

The Future of Caribbean Tourism: A Conversation That Helped Shape the Next Decade

The Future of Caribbean Tourism: A Conversation That Helped Shape the Next Decade

As part of the Puerto Rico Builders Association’s Annual Convention, AG&T Chairman Adam Greenfader moderated a distinguished panel of leaders from government, global hospitality, development, alternative accommodations, and investment to discuss the future of tourism in Puerto Rico and the Caribbean.

The conversation brought together Carla Campos (Puerto Rico Tourism Company), Pablo Maturana (Hilton), Rachel DeLevis (Airbnb), Federico Stubbe (PRISA Group), Federico Sánchez (Grupo Interlink), and Eric Berman (Lifeafar) to explore how Puerto Rico could strengthen its position as one of the Caribbean’s leading tourism and investment destinations. Topics included evolving traveler preferences, hotel development, branded hospitality, airlift, alternative accommodations, public-private collaboration, and the critical role tourism plays in driving long-term economic growth.

 

 

Looking Beyond Traditional Tourism

One of the central themes of the discussion was the recognition that tourism was becoming far more than a leisure industry.

Hospitality had evolved into one of Puerto Rico’s most important economic development strategies—supporting construction, infrastructure, transportation, retail, food and beverage, entertainment, healthcare, and entrepreneurship throughout the island.

The conversation emphasized that future competitiveness would depend upon creating differentiated experiences rather than simply increasing hotel inventory.

New Trends Reshaping Hospitality

The panel examined several emerging trends that have since transformed the industry.

Global hotel brands were expanding their presence throughout the Caribbean.

Alternative accommodation platforms such as Airbnb were changing how visitors experienced destinations.

Developers were increasingly focusing on mixed-use communities, branded residences, wellness, experiential travel, and lifestyle-driven hospitality.

The discussion also highlighted the growing importance of airlift, destination marketing, public-private collaboration, and investment in supporting infrastructure—all factors that continue to shape Puerto Rico’s tourism economy today.

Looking Back

In many respects, the themes discussed during this panel proved remarkably prescient.

Since then, Puerto Rico has experienced record tourism performance, expanded international air service, significant new hotel investment, the growth of luxury hospitality, and increased private-sector participation across the tourism ecosystem.

Hospitality has become one of the island’s principal economic drivers, supporting thousands of jobs while attracting billions of dollars in private investment.

AG&T’s Perspective

For more than three decades, AG&T has been committed to advancing conversations that shape the future of Caribbean hospitality.

Whether through the Puerto Rico Builders Association, the Urban Land Institute, CHICOS, Discover Puerto Rico, Bisnow, or numerous investment forums throughout the Caribbean, our objective has remained consistent: bringing together government leaders, developers, investors, hotel brands, financial institutions, and entrepreneurs to explore the ideas that will define the region’s next generation of growth.

Tourism is no longer simply about attracting visitors.

It is about creating resilient destinations, vibrant communities, sustainable economic development, and long-term investment opportunities.

Puerto Rico has demonstrated that when the public and private sectors work together, hospitality can become far more than an industry—it can become a catalyst for economic transformation.

As Puerto Rico continues to strengthen its position within the global tourism marketplace, the conversations that began years ago remain just as relevant today. The difference is that many of the ideas discussed have now become reality.

Puerto Rico Takes a Big Bite of the Big Apple

October 1, 2019, New York City– The Puerto Rico Builders Association takes a  big bite of the Big Apple at the 2019 Bisnow National Real Estate Finance Summit. The National Real Estate Finance Summit is one of the most esteemed, high-level, and best attended event in the nation. This year was no exception with over 300 attendees from finance, capital markets, financial advisory, private equity, and real estate.

The Puerto Rico panel included Ing. Emilio Colón Zavala,  President of the Puerto Rico Builders Association/ ECZ Group,  Eric Berman,  Chief Investment Officer at Lifeafar, Jorge Ruiz-Montilla, Capital Member and Chairman of the Real Estate & Finance Practice Group at MCconnell Valdes, Philip Carroll,  Director of Finance at Royal Palm Companies and Adam Greenfader, Managing Partner of AG&T.

Ethan Penner, best known  for creating the CMBS  market, key noted the event with insight on “high conviction investment themes.”  The Puerto Rico panel drew much interest at the Finance Summit. “We were impressed to hear from the leaders of the financial markets in New York that they see Puerto Rico as a great opportunity,  explained Emilio Colón Zavala. With less than 7% tourism GDP, there is room for 15,000 more hotel keys.’

Philip Carroll of Royal Palm Companies , concurred with the assessment of hospitality demand and explained some of the island’s competitive advantages in Puerto Rico including the ability to leverage Tourism Tax credits with Opportunity Zone incentives. Royal Palm is currently developing a 1,000 key hotel and marina resort on the island.  

 

Pictured Left to Right: Adam Greenfader, Emilio Colon Zavala, Philip Caroll, Marcial Diaz

 

The panel received multiple questions throughout the presentation.  Of particular interest, was the level of detail and financial sophistication about Act 20/22. Jorge Ruiz-Montilla explained some of the benefits of the laws and highlighted the island’s economic and political stability.

When asked, “Why now, why invest in Puerto Rico today”, the consensus of the group was clear…the numbers speak for themselves. “Puerto Rico  posted positive economic growth in 2019 and is forecasting a 2.5% GDP for 2020. We clearly hit bottom and with Billions of CDBG-DR money coming to the island in the next few years,  the time is now”, quoted Adam Greenfader, who moderated the Panel.

Lifeafar, a real estate investment and hospitality firm, recently expanded their operations from Medellin, Colombia to Puerto Rico.  “Puerto Rico is a place you can make a real change. Our investors want to make a good return on investment but also know they are helping to make a difference”, quoted Eric Berman.  

For more information about Puerto Rico,. You can join the Puerto Rico Builders Association on October 29-30 at their annual conference. See link attached. https://www.constructorespr.com/convencion/#eventbrite

 

About The Puerto Rico Builders Association

The Puerto Rico Builders Association is a non-profit organization established in 1951. The PRBA is the local chapter for the National Association of Home Builders (NAHB) and the Urban Land Institute (ULI). We proudly represent the leaders in housing, commercial and industrial and tourism sectors. We also represent investors and professionals related to the Puerto Rico’s real estate development and the construction industries. Our main objective is to promote and lead planned development, that is safe and sustainable, as to serve as an a principal productive economic driver motor for our island, in collaboration with the private and public sectors in Puerto Rico.

About AG&T

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.