Despite of Puerto Rico's economic crisis, a private equity called Fundamental Advisors, who works with impoverished assets, led the buying of a hotel in the Commonwealth. El San Juan Resort and Casino was bought for $71 million from Balckstone Group LP.
According to Fundamental Advisors' Chief Executive Laurence Gottlieb, the buying group of the hotel is said to be planning to spend $35 million to renovate the 1957 property which includes renovating its more than 300 rooms and the spa, lobby and pool. The buying group, which includes Leon Mayer & Co. and hotel management firm Aimbridge Hospitality will give Aimbridge the authority to take over the Hilton hotel. Gottlieb also said that "we think this hotel needs substantial care and feeding. This is a significant overhaul that will attract a different demographic to the hotel, like the highest-end business travelers and families on vacation." Gottlieb added that the renovation will take the hotel from being a three- star accommodation to a luxury one.
In spite of Fundamental Advisors' efforts of limiting the probabilities of loss and the private equity's buying of impoverished Puerto Rican's government debt, El San Juan Resort and Casino is the first real estate bought in the island. In one of Fundamental Advisor's greatest deal in 2010, the private equity has acquired a minor league baseball team that has a connection with St. Louis Cardinals. Fundamental managed the team and restructured their debts. Later on, Cardinals bought the team, and the stadium is sold to the city of Memphis, both from the Fundamental Advisors.
The investment firm based in New York became in line with the ranks of other investors, such as CPG Real Estate LLC and John Paulson, a hedge fund manager. Fundamental Advisors is hopeful that tourism will continue to flourish despite of failing economy and that real estate will be valued higher in the future.
