Renewed efforts and enthusiasm to promote Puerto Rico’s business and tourism industries

The Puerto Rico Builders Association continues with renewed effort and enthusiasm to promote Puerto Rico’s business and tourism industries on the island as well as the mainland U.S..  In 2017, the Puerto Rico Builders Association and Governor Ricardo Rosselló Nevares hosted over two hundred investors, developers, and institutional capital groups at the Caribbean and Latin America Investment Summit. The event was a resounding success and attracted many large investment groups to Puerto Rico  – as well as garnered much National and International media attention.

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Building on last year’s success, The Puerto Rico Builders Association will be hosting with Bisnow, the largest platform for CRE news, events and education in the world, its first Caribbean Hospitality Investment Summit in Miami. Join us on August 23, 2018, at the summit, where we will gather industry leaders and key government representatives to discuss everything from hotel and resort development, to the future of tourism, resiliency, and recovery strategies. Some of the speakers include:

Ing. Emilio Colón Zavala
President 
Puerto Rico Builders Association/ ECZ Group, Richard Millard
CEO
Trust Hospitality, Rogerio Basso
Head of Tourism
Inter-American Development Bank, Fernando Fernandez Vice President Of Development, Caribbean Apple Leisure Group,  Jonathan Kracer
Founder
Sion Capital, LLC., Ted Middleton
Senior Vice President – Development – Hilton Worldwide, Christian Glauser-Benz
Vice President, Development & Acquisitions
Dream Hotel Group, Harry Cook
Capital Member, Real Estate & Finance Practice Group
McConnell Valdés, Vanessa Mange
Director, Global Development Kimpton Hotels, Jorge Ruiz-Montilla
Capital Member and Chairman, Real Estate & Finance Practice Group
McConnell Valdés,

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For more information about the event, please contact Adam Greenfader at 305.363.8833 or to grab a ticket, visit Bisnow’s event page. https://www.bisnow.com/south-florida/events/hotel/Caribbean-Hospitality-Investment-Summit-980

 

 

 

2018 Caribbean Hospitality Financing Survey

 

KPMG Just released its 14th annual Caribbean Hospitality Financing Survey highlighting financing trends in the region’s hospitality and tourism industry and the outlook for the future of the industry.

The major event since our last survey was the catastrophic 2017 hurricane season which had a devastating impact on many countries in the region. It was therefore, with some trepidation that we approached financiers of tourism projects in the region. We were pleasantly surprised, and relieved, to find remarkably high levels of confidence in Caribbean tourism amongst financiers. Confidence levels for banks increased for an astonishing ninth year in a row and the confidence levels of non-banks (private equity, family offices etc.) were even higher. However, lessons have been learned. Financiers will be scrutinizing insurance coverage and quality of construction more intensely than they did prior to Irma and Maria.

Some of the key findings of the survey include:

  • Confidence levels of banks and non-banks have increased despite the impact of hurricanes;
  • Financiers’ appetite for issuing senior debt not just for expansions and renovations but acquisitions;
  • The quality of construction will receive more attention and adherence to codes of construction will be non-negotiable;
  • An increasing number of financiers are willing to consider new builds;
  • Half of the banks and 57% of non-banks think the economy is approaching the peak;
  • The issue of insurance, the adequacy of coverage and the approach taken by insurers received a lot of attention; and
  • The critical issues impacting financing activity in the region.

 

HOLA Conference – Day 1

5|15|2018 – JW Marriott, Downtown, Miami.  

AG&T and the Builders Association of Puerto Rico invited to participate at the Hotel Opportunities Latin America (HOLA) Conference in Miami. 

Some take aways from today’s meeting in Miami. 

  • The LATAM hotel industry is seeing a lot of over supply with a few exceptions in the emerging countries. 
  • Big hospitality growth in Colombia(14%), Costa Rica(15%)  and Peru (18%) . 
  • Mexico and Brazil still lead in overall Latin American hotel supply pipeline. 
  • As for new development, risk management is the word of the day. As is expected, all inclusive resorts seem less concerned about the new disruptors like Airbnb, but all are keeping their eyes on elections in several key countries. 
  • Argentina and Brazilian markets continues to draw hotel groups but there is uncertainty about exit timetable. 
  • Investors in several LATAM countries move beyond capitalization rates and focus primarily on desired yields.

 

Join us at the Hola:  http://holaconference.com

 

 

 

Puerto Rico Has Higher Overall ADR and Occupancy than the Caribbean Market.

The Caribbean has seen five consecutive years of growth in occupancy, ADR, and RevPAR. The U.S. remains the largest feeder market.

A-Boutique hotel-01

 

It appears that even with the Puerto Rican debt crisis well underway, tourism has not been negatively impacted. This no doubt results from the economic strength of the mainland and its status as the primary source of Puerto Rico’s visitors.

The next charts display historical data for Puerto Rico and the overall Caribbean hotel market from 2010 to 2015, the most recent annual data available. General trends in occupancy, ADR, and RevPAR can be observed from these comparisons.

The past recession impacted the Caribbean and Puerto Rico to a significant degree. Declines were visible through 2010, but the market has seen strong gains since.

According to STR and CBRE Report, Puerto Rico followed this trend, with ADR growth fueling RevPAR gains in 2013, negating a slight decline in occupancy.

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Puerto Rico Vs. Caribbean RevPAR Trends

 

Conversely, Puerto Rico’s RevPAR gain in 2014 was driven by occupancy. It is important to note that Puerto Rico generally has higher overall ADR and occupancy than the Caribbean market average.