What is a problem for some is an advantage for others. The financial crisis in Puerto Rico is pushing investors to extremes!
The economic crisis and the inability to pay on its debt led to a massive business facilities sell-out in Puerto Rico. Most investors acquires the assets of the owners of the local casinos and hotels at reduced prices. In particular, a week ago, John Paulson saved from bankruptcy Hotel San Juan Beach by buying it for just $9.5 million. The hotel has full 96 rooms and is located in San Juan. The company also owns a number of other hotels in Puerto Rico like St.Regis Bahia Beach Resort and Vanderbilt Hotel.
What is trouble for some…
Another hotel business, San Juan Resort & Casino was bought last month for 71 million US dollars by Fundamental Advisors Company together with their two partners. The plans of investors to invest in this complex has 35 million. Dollars, and thus raise the level of places to class “luxury”. Therefore, many investors put their properties up for sale. In particular, Blackstone has sold the complex San Juan Resort & Casino. The next Hotel Conquistador and apparently Condado Plaza Hilton, which has already closed the casino it used to have.
…is an opportunity for others
The country’s economy is not the first month in a row in a state of instability. Thus, the size of the public debt of Puerto Rico is currently about $72 million and the government does not expect any foreign aid at the moment. A further worsening of the crisis, experts predict aggravation of the crime situation in the country, and as a result, decrease in the number of gamblers. So maybe it is the perfect time to invest in Costa Rico? At least, in its legal gambling business.