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

Market Research AG&T

Market Research AG&T

 

Executive Summary

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

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 Developers and investors who rely on outdated or incomplete information risk making costly decisions.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

 

Market Overview

1. Tourism Trends and Data-Driven Insights:

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

2. Key Growth Markets Identified Through Market Studies:

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

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

3. The Value of Local Market Intelligence:

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

What a Market Study Provides for Developers and Investors

1. Feasibility and Opportunity Assessment:

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

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

2. Financial Modeling and Profitability:

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

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

3. Site Selection and Location Analysis:

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

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

4. Regulatory and Tax Environment:

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

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

Competitive Positioning: Why AG&T Market Studies Stand Out

1. Tailored Insights:

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

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

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

3. Proprietary Data Access:

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

4. Miami Based

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

Service Offerings for Market Studies

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

– Focus on feasibility and high-level market analysis.

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

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

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

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

– Detailed breakdown of regulatory and tax environments.

– In-depth competitive landscape analysis and investor reports.

– Site planning and design recommendations

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

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

3. Advanced Market Study Package: Building the Capital Stack

– Implement architectural designs into financial modeling

– Establish capital stack requirement

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

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

 

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

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

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

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

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

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

Conclusion: The Strategic Value of a Market Study

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

 

 

About AG&T

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

• Hotel Development and planning

• Commercial Real Estate Sales

• Capital Advisory (Equity | Debt)

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

September 24-25 – CARIF 2025 Financing For Caribbean Infraestructure

CARIF 2024

Looking to secure financing solutions for Caribbean projects? Don’t miss CARIF 2025 Financing For Caribbean Infrastructure on September 24-25 at Coconut Grove’s luxurious Ritz Carlton. Discover the new players in investment funds and sovereign wealth funds, and explore their appetite for collaboration. Uncover the opportunities for regional commercial lenders and multilateral development banks to partner with you. Dive into the latest trends in financial models for infrastructure development and the driving forces behind them. Above all, uncover the elusive investment opportunities waiting for you in this dynamic industry. Join us to propel your investments to new heights!

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Discover Puerto Rico Tourism Development

Discover Puerto Rico

Discover Puerto Rico Tourism video (2:45 s)  highlights Puerto Rico’s unique selling proposition for tourism in 2022 and beyond. Interviews with Adam Greenfader of AG&T and Federico Stubbe of PRISA Group discuss the island’s rich culture, robust infrastructure, great airlift, and other benefits such as Federal tax incentives. Watch the video to learn how you can be part of Puerto Rico’s booming hospitality and tourism industry.

Puerto Rico means business. The island’s supportive ecosystem empowers entrepreneurs’ forward-looking vision with a spectrum of assets, including smart tax incentives, a highly skilled bilingual workforce, U.S. legal & financial frameworks, and an advanced network infrastructure.

 

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  1. Discover Puerto Rico is the official destination marketing organization (DMO) for our Island, which was created by legislation in 2017. Learn more about the organization’s purpose and history, as well as the expert staff who help make the DMO successful.
  2. PRISA GROUP is a family-owned, Puerto Rico-based developer.  PRISA is a builder of green residential communities and luxury hospitality projects. The Company has more than 500 employees and 6,000 units in planning and construction.  The value of works is over $3 billion with over 30 years in the business.
  3. 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.

ULI Roundtable on Climate Resilience in The Netherlands

ULI Roundtable on Climate Resilience in The Netherlands

 

 

ULI Climate Resilience Roundtable

 

The ULI Roundtable on Climate Resilience in The Netherlands was held to discuss how hurricane destruction in the Caribbean (and specifically Puerto Rico, Sint Maarten in 2017 and the Bahamas in 2019), reveals an urgency to rethink urban resilience and regeneration in the Caribbean. The ULI Roundtable brought together Dutch planners, designers, architects, engineers, financial institutions, developers, and investors to discuss new solutions and share global best practice. Specific issues focused on the Dutch knowledge and leadership on climate mitigation across urban design, development and investment. The two speakers included: 

Mr. Adam Greenfader, Chair of the ULI SE Florida/Caribbean Council – shared experiences and outcome advice from the ULI Advisory Services Panelists in the Municipality of Toa Baja, Puerto Rico after the catastrophic and deadly 2017 Hurricane Maria.

Mr. Henk Ovink, Dutch special envoy to the United Nations on Water, and flood expert shared insights into global climate change challenges and the Dutch resilience plans for both the Netherlands and Dutch Caribbean.

Some of the works discussed:

 

 

 

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.

The Future of Tourism and Hospitality Panel

San Juan- “The Future of Tourism and Hospitality: Increasing Capacity and Competing in a New Caribbean Market”, will be the main topic to be discussed by a panel of experts on the subject, each one representing a sector in the ever-changing world of tourism and hospitality.

The chairman of the board of the PRBA, Eng. Emilio Colón- Zavala, stated that: “Through this panel, the Puerto Rico Builders Association (PRBA) will provide the space for a wide and varied discussion, which will cover the new trends in the Modern Tourism industry, as well as the importance of efficiently positioning Puerto Rico as a competitive destination in the Caribbean. Tourism with less than 7% of the islands GDP, is slated to become one of the pillars of our economic development and it is urgent to incorporate into our offer all new trends that continue to develop and evolve in the Hospitality Industry”.

The panel moderated by Adam Greenfader, Managing Partner of AG&T, will have the participation of:

  • Carla Campos- Executive Director, Puerto Rico Tourism Company
  • Pablo Maturana- Managing Director Development South America & The Caribbean, Hilton International
  • Rachel DeLevis- Policy Associate, AirBnB
  • Federico Stubbe- President, PRISA Group
  • Federico Sánchez- President and CEO, Grupo Interlink
  • Eric Berman- Chief Investment Officer, Lifeafar

 

This panel will be held on October 30, as part of the Forty-Sixth Annual Convention of the Puerto Rico Builders Association: “A Challenge to Build the Future”, which will take place at the Puerto Rico Convention Center on October 29 and 30.

 

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About the PRBA

The Puerto Rico Builders Association is a private, non-profit organization.  Established in 1951, its main purpose is to represent leading developers and investors of housing, commercial, office, industrial and tourism projects. The Association also represents investors, suppliers, banks professionals and companies associated with development and construction in Puerto Rico. Its main objective is to promote and lead the planned, safe and sustainable development in order to serve as the island’s economic engine, in collaboration with Puerto Rico’s public and private sector.

 

ULI Caribbean Resiliency and Rebuilding Continues

Big shout out to many of you who flew in from across the country and Puerto Rico to attend our third Caribbean roundtable in Miami. It was evident from the discussions and presentations,  that the Caribbean region continues to offer a wealth of opportunities as well as challenges.  Our theme at yesterday’s roundtable was centered around ULI efforts in resiliency and rebuilding.

The panel discussion started with a report by Mr. Tom Roth of Grass River Property on Puerto Rico. Tom travelled the island last year as part of the ULI Advisory Service Panel thanks in part to the   the support of The Kresge Foundation and our local District Council. The ULI Advisory Services Panelists spent a week in the Municipality of Toa Baja, Puerto Rico, to provide expert advice on enhancing recovery efforts after the catastrophic and deadly 2017 Hurricane Maria. Tom Roth’s presentation during our roundtable highlighted some of the lessons in dealing with rebuilding, seizing the opportunity to build on higher ground, and the availability of Federal funds for rebuilding homes for Puerto Rican familes.  

To download the full report: https://americas.uli.org/wp-content/uploads/sites/2/ULI-Documents/ULI-ASP_Report_ToaBaja_PR_Final.pdf

While at this moment it is still very dangerous to access Abacos, Bahamas, Gene Budler of DCK presented some real time images of his recent relief trip to Abacos.  The images of the destruction are truly unbelievable with tons of waste, destroyed homes, and obliterated life infrastructure.   As the relief cycle continues, we will be tracking the situation. There is a clear need for stronger, better planned, and more resilient construction. It is our hope to be able to help the Bahamas with some solutions to the massive rebuilding efforts. If you are interested in helping there are multiple organizations. One such group recommended by Gene is MedStar out of Houston, Texas. 

As part of our on-going effort to increase our engage with the Caribbean, we are planning a Caribbean study cruise in 2020. The idea of the cruise is to bring together some of the top minds in resiliency for an comprehensive educational summit.  In addition to the seminars, we plan on visiting several islands that have been affected by the recent hurricanes. If you are interested in helping organize the study cruise please reach out to either Max or myself.  As a reminder, this roundtable is open to non-members as guest to start but is a benefit for ULI members.  To join please visit:  https://americas.uli.org/membership/join/ If you have any questions, please call 1-800-321-5011 or contact Max Helden. 

We are looking to plan a December networking event for this group and then will schedule the next content-oriented roundtable for 2020. 

Thank you all again for your participation and to our very kind sponsor Paramount Miami World Center for hosting the event and lunch. You can learn more about our ULI Caribbean Engagement at https://seflorida.uli.org/get-involved/caribbean-engagement/

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.

 

 

Caribbean Hospitality Summit Draws Record Numbers

Bisnow Caribbean Hospitality

 

Investor Sentiment For Rebuilding The Caribbean Region Remains Strong

 

Miami, Florida – The Bisnow Caribbean Hospitality and Tourism Summit held on August 1, 2019 at the Intercontinental Hotel in Miami drew over two hundred investors, developers, hotel operators and other industry professionals.  

Sponsored by the Puerto Rico Builders Association, this “not to miss” investor event celebrated its 3rd year.  Special shout out to Katya Demina for her help in making the event such a great success. Join us for more events at AG&T. 

Puerto Rico Ready for Development

Ponce Paradise

A Beachfront Acre For $30K In An OZ? Welcome To Puerto Rico

Published by Deidra Funcheon, Bisnow Miami

Puerto Rico was already struggling from decades of fiscal mismanagement and had just declared bankruptcy over its $123B debt when it was hit by two hurricanes in September 2017 — only to run into a botched disaster response. The way some see it, though, rock bottom is behind Puerto Rico, and the island is in the early stages of an upswing. “Puerto Rico is setting an incredible pace for economic recovery,” said Brad Dean, CEO of Discover Puerto Rico, a destination marketing organization that promotes the commonwealth. “Airport arrivals are exceeding pre-Hurricane Maria levels, as are lodging revenues. Given the quick rebound, reinvestment in hotel product and tremendous potential for the island’s tourism industry, this is Puerto Rico’s time. From an investor’s perspective, there’s never been a better time to invest in the island’s tourism industry.”

Buildings and infrastructure are still being repaired and upgraded, and the government has instituted a full slate of tax incentives to lure investors, said AG&T Managing Partner Adam Greenfader, who advises clients from his base in Miami. “You can still acquire assets for 50 cents on the dollar,” he said. “Beachfront land in Puerto Rico today can still be acquired at $30K an acre.” Dean and Greenfader will be panelists at Bisnow’s Caribbean Hospitality & Tourism Summit Aug. 1. Puerto Rico’s economic spiral goes back decades. After World War II, it gave big tax breaks to manufacturers, and to cover for revenue shortfalls, issued more bonds than it could repay. In turn, it implemented austerity measures that did little except drive the population away. Its problems were exacerbated by that fact that it has no voting power in Congress.

Greenfader outlined some key developments toward a turnaround. Puerto Rico’s cash-strapped government has tried to lure investors with laws like Acts 20 and 22, passed in 2012 and designed so that people who move to the island pay little or no federal income tax, even on passive investments. Greenfader said this has attracted 250 to 500 families per year, including big names such as billionaire John Paulson.  Other incentives include one that lets people with tourism-related projects get back 40% or 50% of their acquisition costs.  

 

Development Land
80 Acres in Naguabo, Puerto Rico

 

Puerto Rico’s massive government debt is currently being sorted out by a federal oversight board. “The major bonds, COFINA and GO, have been renegotiated and the bondholders have been put into payment plans,” Greenfader said.  Since the 2017 hurricanes, federal disaster aid — including $1.4B authorized in June — has trickled in. Hotels damaged in the storms were forced to remodel or rebuild and are now offering better products at higher rates. Many are incorporating solar and microgrids to be resilient for the future. The storms raised the profile of Puerto Rico — one study found that prior to them hitting, about half of Americans hadn’t known the commonwealth was part of the U.S. Airport arrivals and tourism revenue have already set records this year. On top of this, Puerto Rico is the beneficiary of community development block grant funding, and 97% of the entire commonwealth — much of it beachfront — has been designated a qualified opportunity zone. “Puerto Rico never had a 1031 exchange, so from a tax perspective, it’s the first time it’s getting capital gains money,” Greenfader said.  

Lifeafar Investments Chief Financial Officer Cole Shephard, who will also be a panelist at the Bisnow event, said his Colombia-based company is already taking advantage of Puerto Rico’s investment climate, raising $16M in an opportunity fund to reposition a 61-room hotel. Shephard said Lifeafar, which started by offering real estate services to expats in Medellín, was drawn by the tax incentives and that the opportunity zone designation was a bonus. He is now doing due diligence on additional properties. “I see the sophisticated money chasing metro San Juan,” he said, suggesting that there is a lot of opportunity for small to mid-market projects outside of the city. Not everything in Puerto Rico is rosy. 

Development Land
29 Acres in Isabella, Puerto Rico

 

As the government has scrambled to generate revenue, sales tax was raised to 11.5%, pensions have been cut, college tuition increased and some 300 public schools closed. Critics have complained that wealthy investors have been protected while ordinary Puerto Ricans suffer. “The locals have had to carry the brunt of these austerity measures,” Greenfader acknowledged. “I’d understand completely, if I see a guy who’s a hedge fund manager with $500M earnings pay hardly any taxes, versus the regular guy paying 35% taxes who’s a salaried worker at Bacardi,” Shepherd said. But Shepherd added that conversations with Puerto Rican officials convinced him they have carefully calculated the tradeoff and found that luring private investment now will help island residents long-term, even though it may take years for the effects to be obvious.

Greenfader suggested that boosting tourism is a winning solution for both investors and residents. Because Puerto Rico since the Kennedy era has been focused on manufacturing, its tourism industry was relatively neglected. The industry now accounts for less than 7% of Puerto Rico’s gross domestic product. In other Caribbean islands, that number is typically between 30% and 80%. Dean’s destination marketing organization, Discover Puerto Rico, was established last year to actively promote tourism. Bisnow’s Aug. 1 Caribbean Hospitality & Tourism Summit will also include Puerto Rico Tourism Co. Executive Director Carla Campos, Hilton VP for Development Juan Corvinos Solans, Puerto Rico Builders Association President Ing. Emilio Colón Zavala and more. 

Event Ended On: Thursday August 1 2019

ULI CARIBBEAN ROUNDTABLE

 

On May 8th,  the ULI CARIBBEAN ROUNDTABLE celebrated its second ROUNDTABLE meeting of the year.  The turnout at Wework in Brickell City Centre was large and enthusiasm for the region palpable.  Present at the event were industry leaders in finance, debt lending, construction, architecture, affordable housing, hotels and green building.      

Big shout out to the Kresge Foundation (https://kresge.org) and all who participated in the Toa Baja Puerto Rico Resiliency Panel. The panel was but another example of the  capacity of ULI to bring real solutions to real world problems.    

Special thanks to our two speakers at the ULI CARIBBEAN ROUNDTABLE -Mr. Rogerio Basso, Head of Tourism at IDB Invest and Mr. Andrew Dicky – Executive VP JLL Hospitality. Financing projects in the Caribbean brings its own set of challenges and opportunities. It was great to look under the proverbial “hood” and examine how capital approaches Caribean hospitality lending. 

Save the Date –On August 1, 2019, The Puerto Rico Builders Association will be hosting its 3rdAnnual Bisnow Caribbean Hospitality Investment Summit in Miami. If you are interested in Speaking/Sponsoring there are a few spots available please reach out to Jorge Montilla jmrm@mcvpr.comfor more details.

You can also see a full list of ULI Events at: https://seflorida.uli.org/events/