Billionaire John Paulson wants to sell two Puerto Rico hotels as market rebounds

Two San Juan hotels he bought for $260 million in 2014 may now fetch $500 million

National Weekend Edition /
Dec.December 11, 2021 10:30 AM
John Paulson with Condado Vanderbilt Hotel and La Concha Renaissance San Juan Resort (Condado Vanderbilt, Marriott)

John Paulson with Condado Vanderbilt Hotel and La Concha Renaissance San Juan Resort (Condado Vanderbilt, Marriott)

Billionaire investor John Paulson, who flirted for years with the idea of moving to Puerto Rico, is seeking two San Juan hotels he bought for $260 million in 2014 — and may be able to get double what he spent.

Paulson hired JLL to market San Juan’s Condado Vanderbilt Hotel and La Concha Renaissance San Juan Resort, according to the Wall Street Journal. Hotel owners and brokers say the two properties could together fetch upwards of $500 million.
Puerto Rico’s tourism and hospitality was hit hard by the pandemic. As of August, more than a third the massive upscale Mall of San Juan, intended to be a symbol of the territory’s economic recovery, sat empty and anchor retailer Nordstrom was on its way out.

Hotel occupancy has now largely recovered to 2019 levels. Occupancy in the first 10 months of 2021 was 63.2 percent, almost twice the percentage last year and below that period in 2019.

Revenue per available room, a key indicator of hotel performance, rose to $152 this year, more than twice last year and above the $137 of 2019, according to STR.

Puerto Rico was struggling economically even before the pandemic. Hurricanes Maria and Irma in 2017 devastated the island amid fiscal and political wose. Hotel owners and investors hope the post-pandemic boom could help reverse those fortunes.
The emergence of the Omicron variant of Covid-19 doesn’t appear to be having a major impact on demand.

“We got some cancellations but they were made up by other bookings,” said Luis Mendez, director of sales and marketing for El Conquistador Resort, whose hotel remains nearly sold out through the New Year holiday.

The U.S. leisure and hospitality market still has some way to go before it returns to pre-pandemic levels. As of November, the industry employed 1.3 million people, or 7.9 percent fewer than it did in February 2020.

[WSJ] — Dennis Lynch





    Related Articles

    arrow_forward_ios
    From left: Michael Dell, Alex Rodriguez and Donald Trump along with the Trump Hotel in Washington, D.C. (Getty Images, The Trump Organization, iStock)
    Firm that manages Michael Dell’s wealth finances deal for Trump Hotel
    Firm that manages Michael Dell’s wealth finances deal for Trump Hotel
    Capstone Equities' Joshua Zamir and Renwick Hotel at 118 East 40th Street (TripAdvisor)
    New owner Capstone revives Midtown’s Renwick Hotel
    New owner Capstone revives Midtown’s Renwick Hotel
    Jonathan Goldstein, CEO, Cain International and 356 West 58th Street (Cain International, Google Maps)
    Midtown’s Hudson Hotel slated for mixed-use redevelopment
    Midtown’s Hudson Hotel slated for mixed-use redevelopment
    Joseph Chetrit and 98 Montague Street in Downtown Brooklyn (Credit: Getty Images and Google Maps)
    Brooklyn’s iconic Bossert Hotel facing foreclosure
    Brooklyn’s iconic Bossert Hotel facing foreclosure
    Strong month for US economy, but hospitality hiring slows
    Jobs report shows more workers returning to office
    Jobs report shows more workers returning to office
    Related's Stephen Ross, the Gregory Hotel at 42 West 35th Street and Meadow Partners’ Jeffrey Kaplan (Getty, Google Maps, Meadow Partners)
    Related sues Meadow after foreclosure on Garment District hotel
    Related sues Meadow after foreclosure on Garment District hotel
    Tavros' Dov Barnett and Charney's Sam Charney with 24-09 Jackson Avenue (Tavros, Charney Companies, Google Maps)
    Charney, Tavros pick up stalled LIC development site
    Charney, Tavros pick up stalled LIC development site
    Former Daija US CEO Andrew Miller in front of 301 Park Avenue (LinkedIn/Andrew Miller, iStock)
    Top exec’s exit latest blow to Waldorf Astoria’s lagging condo conversion
    Top exec’s exit latest blow to Waldorf Astoria’s lagging condo conversion
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...