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Este informe no está disponible en español. CARIBBEAN BUSINESS Developers secure $130 million interim financing for hotel Property to be built adjacent to new Convention Center District in Isla Grande By LORRAINE BLASOR April 28, 2005 The developers of a 500-room hotel in Isla Grande’s Convention Center District have secured the interim financing for the project and are hopeful the Government Development Bank (GDB) will approve their application for permanent financing as early as mid-May. Jerry Thoele, president of the hospitality division of Texas-based Garfield Traub Development LLC, and Federico Sánchez, president of Interlink Group of Puerto Rico, said they have obtained a $130 million interim loan from FirstBank and are now standing by to hear from the GDB on their request for $130 million in permanent financing. They said all signs are positive that the GDB will come through. "The GDB has been very thorough in its analysis. We have given them all the information for which they have asked," Sánchez said, noting the financing request is structured following Tourism Development Fund (TDF) guidelines. TDF is a GDB subsidiary that promotes hotel development on the island. When asked if there was anything at all that could derail the project at this point, Thoele replied, "None that we can see." The hotel is scheduled to open for business in the fall of 2008 and will be managed by Starwood Hotels & Resorts Worldwide Inc., holders of the Sheraton brand. The property is a key element to the success of the Convention Center, currently under construction in Isla Grande. The center, scheduled for completion in the fall, will attract large meeting groups and conventions to the island, requiring many more hotel rooms than are presently available in San Juan to meet the large influx of potential visitors. Thoele said the $130 million investment, which was carefully pondered, takes into account the current volatility of prices due to higher fuel costs, among other factors. In his years in business, he said, "I have been through at least three economic cycles and am well-conditioned to the risk of inflation." Although groundbreaking on the hotel project won’t be until November, technical work and soil testing is already underway. The architects for the project–Ray Architects Engineers and Dallas-based RTKL International–are still putting the finishing touches on the design which, Thoele said, complies with Sheraton’s exacting standards. These apply not only to details such as finishes but cover all mechanical, electrical, and structural aspects as well. "Starwood Hotels & Resorts is a very active member of our team," he said, adding that Sheraton’s corporate design division is working closely with the developers. In addition to its 500 rooms, including 32 suites, the hotel will also feature 63,000 square feet of meeting and prefunction space along with a 10,000-square-foot spa and a rooftop swimming pool offering a bird’s eye view of Old San Juan. Additionally, there will be 70,000 square feet of space for leasing and a multilevel parking facility with a capacity for 400 cars. Although a project of this magnitude can take many years, the developers said they have been working around the clock since they were selected over seven competitors in 2004 to carry out the proposed project. Garfield’s first experience in Puerto Rico was the construction of Las Casitas II at the Wyndham El Conquistador Resort and Golden Door Spa in Fajardo. Thoele said his company might consider other opportunities here, but the focus for now is on the hotel. Property to be built adjacent to new Convention Center District in Isla Grande By LORRAINE BLASOR The developers of a 500-room hotel in Isla Grande’s Convention Center District have secured the interim financing for the project and are hopeful the Government Development Bank (GDB) will approve their application for permanent financing as early as mid-May. Jerry Thoele, president of the hospitality division of Texas-based Garfield Traub Development LLC, and Federico Sánchez, president of Interlink Group of Puerto Rico, said they have obtained a $130 million interim loan from FirstBank and are now standing by to hear from the GDB on their request for $130 million in permanent financing. They said all signs are positive that the GDB will come through. "The GDB has been very thorough in its analysis. We have given them all the information for which they have asked," Sánchez said, noting the financing request is structured following Tourism Development Fund (TDF) guidelines. TDF is a GDB subsidiary that promotes hotel development on the island. When asked if there was anything at all that could derail the project at this point, Thoele replied, "None that we can see." The hotel is scheduled to open for business in the fall of 2008 and will be managed by Starwood Hotels & Resorts Worldwide Inc., holders of the Sheraton brand. The property is a key element to the success of the Convention Center, currently under construction in Isla Grande. The center, scheduled for completion in the fall, will attract large meeting groups and conventions to the island, requiring many more hotel rooms than are presently available in San Juan to meet the large influx of potential visitors. Thoele said the $130 million investment, which was carefully pondered, takes into account the current volatility of prices due to higher fuel costs, among other factors. In his years in business, he said, "I have been through at least three economic cycles and am well-conditioned to the risk of inflation." Although groundbreaking on the hotel project won’t be until November, technical work and soil testing is already underway. The architects for the project–Ray Architects Engineers and Dallas-based RTKL International–are still putting the finishing touches on the design which, Thoele said, complies with Sheraton’s exacting standards. These apply not only to details such as finishes but cover all mechanical, electrical, and structural aspects as well. "Starwood Hotels & Resorts is a very active member of our team," he said, adding that Sheraton’s corporate design division is working closely with the developers. In addition to its 500 rooms, including 32 suites, the hotel will also feature 63,000 square feet of meeting and prefunction space along with a 10,000-square-foot spa and a rooftop swimming pool offering a bird’s eye view of Old San Juan. Additionally, there will be 70,000 square feet of space for leasing and a multilevel parking facility with a capacity for 400 cars. Although a project of this magnitude can take many years, the developers said they have been working around the clock since they were selected over seven competitors in 2004 to carry out the proposed project. Garfield’s first experience in Puerto Rico was the construction of Las Casitas II at the Wyndham El Conquistador Resort and Golden Door Spa in Fajardo. Thoele said his company might consider other opportunities here, but the focus for now is on the hotel. This Caribbean Business article appears courtesy of Casiano Communications. or
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