Grupo Piñero seals alliance to open projects in Dominican Republic and Jamaica for US$200 million
With the financing, it plans to reactivate its regional portfolio.
The Inter-American Development Bank ( IDB ), through its private branch IDB Invest, and the Banco Popular Dominicano (BPD) have granted 200 million dollars (175.4 million euros) to the Piñero Group to promote the reopening of its hotels in the Dominican Republic and Jamaica.
Expressly, the IDB has granted 120 million dollars (105 million euros) to the group, which has 27 hotels in the Caribbean and Mexico. On its side, Banco Popular has granted a loan of 80 million dollars (70 million euros) to the hotel operator.
The new liquidity will meet its working capital needs and investments in its hotel facilities, offering a financial cushion during the sector’s recovery stage. The acquisition will also support the economies of both countries, given their high dependence on tourism.
With the financing, Grupo Piñero plans to reactivate its regional portfolio in line with the return of international demand, which will also help recover the generation of foreign currency.
In addition, the reopening of the hotels will mean a reactivation of local value chains and a stimulus for the rehiring of jobs lost during the pandemic and the maintenance of current ones, and promoting the training and qualification of its employees.
Through financing from IDB Invest, Grupo Piñero will participate in a technical consultancy to analyze the impact of climate change on the group’s properties and will design a project for the restoration of mangroves and corals, as well as the protection of coastal areas.
With the transaction, IDB Invest reinforces its confidence in the recovery of sustainable tourism and its commitment to this priority sector in Latin America and the Caribbean, hoping that this transaction will catalyze additional investments in the region.
The operation is expected to contribute to four of the United Nations Sustainable Development Goals (SDGs): Decent work and economic growth (SDG 8), Responsible consumption and production (SDG 12), Climate Action (SDG 13), and Partnerships to achieve the goals (SDG 17).