Reuben Brothers Plan $2B Puerto Rico Resort with Aman, Mandarin, Rosewood Hotels

Key Takeaway

• Reuben Brothers plan a $2 billion luxury resort in Puerto Rico, featuring Aman, Mandarin Oriental, and Rosewood hotels.
• The 2,000-acre Esencia project includes 900 branded residences, a K-12 school, equestrian center, golf courses, and private airport.
• JPMorgan Chase & Co is financing the development; local government tax breaks post-Hurricane Maria have spurred investment.

Reuben Brothers' Ambitious Puerto Rico Project

The Reuben Brothers, British billionaires David and Simon Reuben, are embarking on a monumental $2 billion oceanfront luxury resort in Puerto Rico. Partnering with Will Bennett and Roberto Ruiz Vargas’ Three Rules Capital, the project, named Esencia, is set to transform 2,000 acres in Boquerón Bay, Cabo Rojo. This development will feature hotels operated by prestigious brands such as Aman Group, Mandarin Oriental Hotel Group, and Rosewood Hotels & Resorts, with financing provided by JPMorgan Chase & Co. The scale and luxury of this project underscore the Reuben Brothers' confidence in Puerto Rico's potential as a premier destination.

Comprehensive Luxury and Amenities

Esencia is designed to be a comprehensive luxury community, including as many as 900 branded residences, a K-12 bilingual school, an equestrian center, two golf courses, and a private airport. This ambitious plan reflects the Reuben Brothers' vision of creating a self-sustaining, high-end enclave that caters to affluent residents and tourists. The development aims to capitalize on the growing demand for luxury accommodations and amenities in Puerto Rico, driven by the island's increasing appeal as a prime investment and lifestyle destination.

Puerto Rico's Growing Appeal

Puerto Rico has become an attractive market for luxury developments, partly due to the local government's efforts to promote tourism and provide tax incentives. Following the devastation of Hurricane Maria in 2017, the government introduced tax breaks to attract investment from the mainland, leading to a wave of wealth migration. This influx includes crypto investors and internet celebrities, contributing to a surge in property prices. Jamie Reuben, a principal at Reuben Brothers, highlighted Puerto Rico as "one of the most promising growth markets in the world," emphasizing the island's potential for sustained growth and development.

Market Dynamics and Investment Confidence

The Esencia project is a testament to the confidence investors have in Puerto Rico's market dynamics. The island's growing and resilient customer base has led to demand outstripping supply, particularly in the luxury segment. Will Bennett of Three Rules Capital noted that the local government's efforts to promote tourism have been instrumental in fueling demand for high-end projects like Esencia. This development not only signifies a significant investment in Puerto Rico's future but also highlights the broader trend of luxury real estate investments in emerging markets.

Management Quotes

• Jamie Reuben, Principal at Reuben Brothers:

  "Puerto Rico [is] one of the most promising growth markets in the world."

• Will Bennett, Three Rules Capital:

  "The growing and resilient customer base has led to demand outstripping supply."