Puerto Rico Governor Pedro R. Pierluisi, along with Department of Housing (DV) Secretary William Rodríguez Rodríguez, announced the granting of a $50 million loan from recovery funds for the El Conquistador Hotel in Fajardo. The loan will help complete the reconstruction of the property and purchase damaged furnishings after Hurricane Maria. This will help boost economic growth in the eastern region through improved tourism and job creation.
The loan, provided under the Economic Development and Growth Investment Portfolio Program (IPG), leverages the total $263 million investment in the renovation of this iconic property. The remaining $213 million needed to complete the reconstruction, which began in 2019, comes from private investment.
“My administration views tourism and the visitor economy as a pillar of economic development. Despite historical challenges, Puerto Rico's potential has been evident to the world. The island has become an example of resilience, recovery, and growth in tourism. This program provides financing opportunities for entities whose large-scale projects are promoting the revitalization of Puerto Rico through commercial and industrial activity, job creation, and economic growth. The investments we are making with these funds seek to foster sustainable economic development,” said Governor Pierluisi.
Once the property's renovation is complete, room tax revenue is expected to exceed $2 million annually and 558 jobs will be generated, with a payroll of $29 million annually, making the hotel one of the main employers in the eastern region of the island.
For his part, the Secretary of Housing stated that "economic development, which includes job creation and investment opportunities, is essential for the island's recovery. Through this program, we aim to provide the necessary assistance to large-scale, multi-industry projects that have the potential to provide the island with a diverse window of employment opportunities. This announcement is the first of many we will be making soon."
The full opening of this hotel will substantially benefit Puerto Rico's economy through purchases from local suppliers, revenue from the Sales and Use Tax (SUT), and collateral activities in the region.
Likewise, Fajardo Mayor José Aníbal “Joey” Meléndez stated, “Once again, our city of Fajardo marks the beginning of a cutting-edge initiative, and what better way to do so than with El Conquistador, the IPG investment portfolio program. The operation of the Hotel El Conquistador in Fajardo represents a pillar for the city's economic development, as it is the main employer in terms of employment.”
The IPG program aims to promote Puerto Rico's economic revitalization with loans of up to $50 million at an interest rate not exceeding 2% for large-scale construction projects that generate economic and industrial activity. According to the program guidelines, these loans are forgivable up to a maximum of 50%, provided the borrower meets certain requirements. The total program allocation is $800 million.
Currently, El Conquistador is operating at limited capacity, with 60% of the rooms available for rent and some common areas and amenities undergoing renovation. This construction is expected to be completed by the summer of 2024.
Governor Pierluisi recalled that one of his first strategies was to create the Promote Puerto Rico program, to which he allocated $120 million to strengthen the tourism industry and attract visitors and investors. The CEO added that the strategies to boost tourism have yielded a significant return on investment. In 2022, visitor spending on lodging exceeded $1.5 billion, representing a 30 percent increase over 2021. In fact, 2022 closed with more than 10.2 million passengers through Luis Muñoz Marín Airport, a 10 percent increase over the previous year. Furthermore, the Bureau of Labor Statistics estimated more than 91,200 jobs related to the recreation and lodging sectors, representing the highest number of jobs in tourism in our history.
“It's another great day for our tourism industry, for Fajardo, and for all of Puerto Rico. I congratulate you again for believing in Puerto Rico and for being part of those who put action where words are, supporting the economic development of our beloved island. I wish you the greatest success, and you can always count on my commitment to Puerto Rico,” the governor concluded.
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