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.