As hospitality investment continues to accelerate across the Caribbean and Latin America, access to capital has become one of the defining factors separating projects that move forward from those that remain on the drawing board.

To better understand the evolving financing landscape, Tim Gifford, Managing Director, Capital Advisors – Latin America for CBRE Investment Banking, joined Adam Greenfader, Chairman of AG&T, for a discussion on the state of Caribbean and Latin American capital markets in 2024.

The conversation explored how lenders and institutional investors are evaluating opportunities across the region, the impact of higher interest rates on financing structures, changing debt spreads, underwriting standards, and the outlook for hospitality and mixed-use development.

Capital Markets Are Opening Again

Following several years of rising interest rates and increased market uncertainty, capital markets are gradually becoming more active.

According to Tim Gifford, lenders have become increasingly selective, placing greater emphasis on sponsor experience, project quality, market fundamentals, and conservative underwriting. While financing remains available for well-conceived developments, both pricing and loan structures have evolved significantly compared to the low-interest-rate environment that characterized the previous decade.

Debt spreads, leverage ratios, and loan terms now reflect a greater focus on risk management and long-term project performance.

For experienced developers with strong projects, however, capital continues to be available.

A Flight to Quality

One of the most important themes discussed was the continued strength of institutional interest in high-quality hospitality assets.

Luxury resorts, branded residences, mixed-use communities, and destination developments throughout the Caribbean continue to attract attention from lenders and investors seeking long-term opportunities supported by strong tourism fundamentals.

The Caribbean’s limited supply of premium beachfront sites, growing international tourism, expanding airlift, and increasing demand for experiential travel continue to support long-term investor confidence.

Institutional capital remains highly interested in projects that combine exceptional locations with experienced development teams and realistic business plans.

Bridging Institutional Capital with Regional Developers

While global firms such as CBRE Investment Banking advise many of the world’s largest transactions, the Caribbean market is also characterized by entrepreneurial developers undertaking projects that may be too small to attract the attention of major international investment banks. This is where AG&T has developed a unique role.

For more than three decades, AG&T has worked alongside regional developers, family-owned businesses, landowners, and hospitality entrepreneurs throughout Puerto Rico, Sint Maarten, Costa Rica, Panama, the Dominican Republic, and other Caribbean markets.

Many of these projects fall below the transaction size typically served by the largest global advisory firms, yet they remain critically important to the economic development of the region.

AG&T helps bridge this gap by assisting clients with project positioning, feasibility analysis, capital structuring, strategic partnerships, market intelligence, and introductions to lenders, equity investors, hospitality brands, and institutional capital sources.

Our objective is to help promising projects become investment-ready and position them to access increasingly sophisticated sources of financing.

New Development Continues

Despite higher financing costs, development activity throughout the Caribbean remains remarkably resilient.

Luxury hospitality, branded residences, resort communities, marina developments, mixed-use projects, and infrastructure investments continue to move forward across many island markets.

Developers are responding to evolving consumer preferences by emphasizing wellness, sustainability, resilient design, experiential travel, and integrated lifestyle communities.

Institutional investors continue to recognize the Caribbean’s long-term strengths:

• Limited luxury inventory.

• Exceptional natural assets.

• Strong tourism demand.

• Expanding international connectivity.

• Increasing interest in branded residential products.

• Growing demand for resilient, sustainable development.

These fundamentals continue to support investment even as financing markets become more disciplined.

Looking Ahead

The discussion concluded with a cautiously optimistic outlook.

While capital is no longer as inexpensive or abundant as it was several years ago, the market has become healthier and more disciplined. Projects supported by experienced sponsors, realistic financial assumptions, and strong market fundamentals continue to attract both debt and equity capital.

For Caribbean developers, success increasingly depends on thoughtful planning, disciplined execution, and assembling the right team of advisors, lenders, operators, and investors.

At AG&T, we believe our role extends beyond traditional consulting. We help connect local opportunity with global capital.

By working closely with regional developers while maintaining relationships with leading international firms such as CBRE and many of the world’s largest hospitality brands, lenders, and institutional investors, AG&T serves as a bridge between entrepreneurial vision and sophisticated capital markets.

As Caribbean hospitality enters its next phase of growth, those connections will become more valuable than ever.