the landing hotel rumbao featured

The Landing Featuring Hotel Rumbao - A Tribute Portfolio by Marriott

San Juan, Puerto Rico

The Landing Old San Juan, an exciting investment opportunity in the #1 tourist and entertainment destination in Puerto Rico

We are pleased to invite accredited investors to join us in our latest investment opportunity, a mixed-use complex located in Old San Juan, Puerto Rico. The project is comprised of ±70K sf of retail space leased to nationally known tenants, including Walgreens, US Postal Service and First Bank, an 839-space parking garage, a 240-room hotel expected to be completely transformed and rebranded to a Tribute Portfolio by Marriott, and ±10.5K sf of food and beverage outlets including two waterfront restaurants.


Target IRR


Target Avg. Annual Returns


Minimum Investment

4 Yrs

Target Avg. Annual Returns

Investment Highlights

Puerto Rico is one of the best performing U.S. lodging markets in the country with a controlled supply and strong demand. Puerto Rico led the way in travel recovery post-pandemic; San Juan recorded a 2021 occupancy rate of 65.5% and a RevPAR (revenue per available room) of $149 (STR), one of the strongest RevPAR locations in the United States (tied with Miami in 2021). The San Juan market continued to grow in 2022, realizing a 33% RevPAR increase from January through August. This figure is in spite of the slower than expected recovery of the cruise industry, which has historically been a significant demand driver for the market.

Millions of visitors seek out Old San Juan each year for its wealth of historic buildings and monuments, towering mountains, tropical rainforests, white sandy beaches and vibrant culture.

Despite the current hotel’s positioning and lack of renovation, The Landing reached 74% occupancy and an average daily rate (ADR) of $177 through November 2022, demonstrating the resilience of the market. Post-conversion and stabilization, The Landing is expected to increase ADR by 30% and reach comp set occupancy.

The 240-room hotel, which includes the highest percentage of suites in Old San Juan (42%), is expected to be completely transformed into a Tribute Portfolio by Marriott. The Tribute Portfolio is a family of independent boutique hotels created for travelers who take pride in their individuality. The inclusion in the Bonvoy loyalty program is expected to attract travelers focused on creative spaces that connect people and places. The Hotel is expected to attract strong transient demand, in addition to high market penetration for group and contract business, given its full-service amenities, flexible meeting space and exceptional location.

With a dated product, the current market penetration is approximately 83%. Post-renovation, market penetration is expected to grow by 11%.

The Landing is subject to the Tourism Industry Support Act of 2016, which awards tax credits to certain tourism-related businesses in Puerto Rico. As a result, nearly half of The Landing’s cash-on-cash return (~$22M USD) is expected to be derived from tax credits and is not dependent on project performance.

A major factor driving U.S. investors to the Caribbean is the favorable taxation environment. Tourism and hospitality investors enjoy a 90% exemption on property taxes as well as a 100% exemption on municipal construction, excise and sales taxes. Puerto Rico is also unique as it greatly benefits from operating within a United States jurisdiction. This affords investors with political stability, policies and regulations that would otherwise be foreign in other Caribbean markets.

The Landing is expected to benefit from the combination of diversified revenue streams from the Hotel Rumbao, ±70K sf of retail space and an 839-spot parking garage. Upon stabilization, this mix is projected to bring The Landing more than $5.4 million of revenue on an annual basis, independent of hotel operations.

One of the unique benefits Puerto Rico enjoys over other Caribbean destinations is the non-requirement of passports for U.S. citizens. Puerto Rico is part of the U.S. which makes this Caribbean oasis a favorable and highly accessible travel destination with hundreds of non-stop flights in and out of Luis Muñoz Marín International Airport (SJU) every day.

The port of Old San Juan, located directly in front of The Landing, is one of the most popular cruise destinations in the Caribbean — home port to more than 40 cruise routes — and the most visited place in Puerto Rico. The port serves 18 world-renowned cruise line operators and nearly 2 million passengers every year with ~20% boarding or disembarking from Old San Juan. The Hotel’s strategic location is expected to capture leisure demand from passengers before and after their cruises. In August 2022, the Puerto Rican government announced a $425 million public-private expansion and modernization of the Cruise Port, doubling its capacity and bringing more visitors to Old San Juan.

Marriott offers one of the strongest loyalty programs in the world, with approximately 120 million members worldwide. The property is expected to also benefit from the brand’s reservation system. Management has been assumed by DHM, which operates more than 75 hotels and 15,000 keys in resort, business and convention markets throughout the United States. Since acquiring the Hotel (September 2021), Driftwood has increased the Hotel’s NOI by 7% and when stabilized, NOI is projected to be 10% higher than that under previous ownership.

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