Puerto Rico's Growth is Exponential

Puerto Rico has had a rough couple of years after Hurricane Maria devastated much of the island, wiping out power and infrastructure and throwing the tourism industry into upheaval. However, the disaster gave the island territory the chance for a reset and, now, the tourism industry is coming back bigger and better than ever.

Ricardo Alvarez-Diaz is on the forefront of Puerto Rico’s transformation. He is a founding partner and CEO of Alvarez-Diaz & Villalon Architecture & Interior Design with headquarters in San Juan, Puerto Rico, which also has offices in Miami, Florida.

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Alvarez-Diaz has played a key role in the rebuilding efforts on the island and was appointed by the secretary of state to serve as a liaison between the public sector and the Federal Emergency Management Agency.

“The first six to eight months after the hurricane were devastating,” said Alvarez-Diaz. “It was very difficult, and there were a lot of questions about funding and insurance companies were slow to pay. Hotels lost their high season, some of them closed and it took time to fix their properties. After that electrical grid was fixed to the level it was before the hurricane, most hotels reopened stronger.”

This downtime gave the island the chance for a reset.

“Before the hurricane, investors were not thinking of building or investing in Puerto Rico because of the government’s bankruptcy,” Alvarez-Diaz noted. “There was a lot of uncertainty and investors were hesitant. After the hurricane, investors doubled down.”

Now, the Gran Melia Coco Beach has reopened as The Resort at Coco Beach, which is a Hyatt Regency resort. Dreams Resort & Spa Puerto Rico and the ALOFT Hotel at the Convention Centre at District San Juan is coming in early 2020. El Conquistador Waldorf Astoria is reopening in May 2020 and the Four Seasons, Cayo Largo is coming later in 2020.

These properties just scratch the surface of what is coming to the island, according to Alvarez-Diaz.

“Before the hurricane, I would say there were maybe eight new hotels in the pipeline and, now, there are over 14 and my company is involved in many of them,” he said. “We are working with brands like Marriott and other local companies as well as a new brand in areas such as San Juan, Isla Verde, Condado and more.”

The growth is expanding.

“There are 16,000 hotel rooms now and, in the pipeline just from our own office, we have almost 1,000 new keys being designed. In the whole of Puerto Rico, there might be 3,000 more hotel units, which is incredible if you think that from 1984 to 2006, we went from 9,000 rooms to 15,000. Percentage-wise and time-wise the growth over the last two years has been exponential,” he said.

Currently, Alvarez-Diaz & Villalon is working on the Jade St. Clair Hotel, a nine-story, art deco-inspired property located on Isla Verde Beach in Carolina, Puerto Rico. The property is part of the St. Clair Collection and will feature 108 rooms when completed, offering guests a rooftop pool and bar, fitness center, rooftop terrace and restaurant. It is part of a trio of hotels planned for the area.

The island’s new investment philosophy, Invest Puerto Rico, is spearheaded by the private sector and takes a new philosophy when it comes to investing, building and promoting the island. Alvarez-Diaz is a board member and vice chair of Invest Puerto Rico.

The program was created two years ago by the government of Puerto Rico. They turned over the responsibility of outside investment to the private sector to bring new investment to the island, similar to programs such as Jobs Ohio and Enterprise Florida.

“[Invest Puerto Rico] takes new investors by the hand and makes sure that they are successful in the process, from identifying property to getting permits and more. Invest Puerto Rico has now taken over the responsibility of promoting the island as a place to do business.”

It is easy to see how this new strategy has already led to new opportunities.

Currently, there is a redevelopment of the wharf and waterfront development that connects Condado, Isla Verde and the convention center district with Old San Juan. The development not only creates hotel availability but also apartments, offices, retail spaces and entertainment as well as a waterfront walk that connects all three. According to Alvarez-Diaz, there will also be two new piers for cruise ships and a new mega-yacht marina.

“We are focusing on what we have done for years. We are creating unique experiences and unifying the experiences to gives a richer experience,” he said.

The hurricane thrust Puerto Rico into the spotlight in a new way and with it has come the chance for a “rebranding” of sorts and Alvarez-Diaz is enthusiastic about its resurgence.

“Only 37 percent of the U.S. mainland knew that the people who live in Puerto Rico are U.S. citizens,” said Alvarez-Diaz. “There was always this confusion that Puerto Rico was a Latin American country and that you needed a passport. One of the side effects of the hurricane was a lot of exposure and people started to understand that the island IS a territory of the U.S. and you do not need a passport to visit.”

There are now federal funds flooding into the island for infrastructure to better electricity, water and other much-needed improvements. This is allowing things to be rebuilt in a more sustainable way that will last into the next few decades.

People are really wowed when they get to this island these days, says Alvarez-Diaz.

“They are in shock by the beauty and amazed by how quickly things have gotten a lot better,” he pointed out. “A lot of people think that the island is in a shambles and is completely destroyed but it’s not. People come away surprised and excited.”