Puerto Rico Resorts: Billionaire Looking To Buy San Juan Hotel Complex


Puerto Rico resorts are apparently still an attractive investment, despite the US territory’s recent economic woes and the rising costs of doing business on the island.

Billionaire John Paulson’s hedge fund company, Paulson & Co., is reportedly looking to wade deeper into the San Juan hotel market. According to a Bloomberg Businessweek report, the 58 year old investor is in negotiations to pick up the Candado Vanderbilt and La Concha Resort, both on the beach in San Juan. The commonwealth’s government is currently part owner of the resorts. According to the report, Pualson & Co. is poised to pay around $200 million for the two hotels.

This isn’t Paulson’s first time investing in Puerto Rico and it likely won’t be his last. His hedge fund firm, which is headquartered in New York, invested in two other resorts in the US territory– which is currently being considered for statehood – last September, the Bahia Beach Resort & Golf Club and St. Regis Bahia Beach Resort.

Puerto Rico’s Secretary of Economic Development and Commerce, Alberto Baco Bague, is on record saying:

“(Paulson & Co.) continues to negotiate different opportunities in Puerto Rico. These commitments are over $1 billion, half a billion in 2014 and half a billion in 2015.”

So, why is the man listed as #36 in the Forbes 400 and the country’s #4 hedge fund manager investing in San Juan, Puerto Rico resorts now? He is on record saying that Puerto Rico had a stagnant economy that was poised for growth, but that was before Puerto Rico had its bonds relegated to junk status.

Paulson, by all accounts a self-made man, became a bit of a notorious figure for making a $15 billion fortune off the subprime mortgage crisis, Bloomberg reports. Paulson had even briefly considered moving to the island in an effort to save money on taxes on his investment profits, but changed his mind amid negative media attention. One thing is sure: Paulson knows the investment game – over 80 percent of the $20 million in assets his fund oversees are above the watermark according to Forbes – and must see some potential if he’s investing in Puerto Rico resorts.

In related news, Paulson isn’t the only one enjoying Puerto Rico resorts lately. New Jersey Gov. Chris Christie recently drew flack from New Jersey residents over leaving Lt. Gov Guadagno in charge of dealing with the aftermath of a snowstorm during his vacation to a Puerto Rico resort.

What do you think? Is Paulson & Co.’s investment in the San Juan hotels good for the Puerto Rican economy? Are Puerto Rico resorts a good risk in light of the island’s recent setbacks?

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