IDB Invest provided US$120 million in financing to Grupo Piñero, a leading hotel operator in the Caribbean and Mexico with 27 hotels in the region. 

In addition, Banco Popular Dominicano will provide an US$80-million loan, for a total package of US$200 million.

IDB Invest’s financing will support Grupo Piñero in the reopening of its hotels in the Dominican Republic and Jamaica that were closed due to the COVID-19 pandemic. This liquidity will address the company’s working capital needs, inject funds to keep its properties competitive, and provide a financial cushion as it embraces recovery.

The Dominican Republic and Jamaica are highly dependent on the tourism sector and have been largely affected by the crisis, which makes restoring tourism activity a priority.

With this financing, Grupo Piñero plans to revitalise its regional portfolio, coinciding with the return of international travel, which has been gradually increasing, as well as supporting the generation of foreign exchange. The reopening of its portfolio will reactivate local value chains, reestablish jobs lost during the pandemic, in addition to maintaining existing ones, and also promote the training of employees.

IDB Invest will also offer technical assistance for the protection of coastal areas, the restoration of mangroves and corals, in addition to a consultancy to analyse the impact of climate change on the group’s properties.

With this deal, IDB Invest reaffirms its commitment to investing in the recovery of sustainable tourism, a priority sector in Latin America and the Caribbean. We anticipate that this transaction will also serve as a catalyst for additional tourism investments in the region.

This 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 for the Goals (SDG 17).