Caribbean Development

Sutherland lawyers represent hotel and resort developers, owners, operators, franchisors, franchisees and lenders in projects throughout the United States, the Caribbean region and around the world. Our experience covers multiple practice areas and gives us the ability to deal with a broad array of issues and projects across the hospitality industry.

Troubled Hotel Projects

Today’s challenging environment demands the ability to counsel on agreements that minimize the risks and provide a path for seeing a project through difficult times. Sutherland attorneys from a number of practice areas, including real estate, finance, bankruptcy, and litigation, have substantial experience with distressed hotel projects.

Hotel Development and Repositioning

Development and repositioning of hotels and resorts in the Caribbean region presents a unique set of challenges, particularly in times of global economic and financial crisis. For many projects, a complex arrangement of public/private cooperation is the key to success.

A number of proposed developments, restructures and repositioning matters are under discussion, but not all of them will reach completion or perform to projections. Ultimately, the undertakings that benefit from a coordinated effort at the outset, such as Sutherland’s team approach, are best positioned to enjoy long-term success.

Sutherland’s experience in putting together mutually beneficial public/private partnerships accelerates the development and redevelopment process by helping governments and developers find common ground sooner. In providing creative solutions that move projects forward, we call on the firm’s deep experience in tax policy, complex loan and bond transactions, and real estate and resort development and management.

We also regularly represent hotel companies and developers in connection with investment and management opportunities throughout the Caribbean.

Blending Developer Experience and Local Initiative

Public/private partnerships depend on an intricate balance of private funding, development experience and local vision and initiative. The most successful Caribbean partnerships are international ventures involving capital and development know-how from several nations. Each venture has to overcome cultural differences, and each must satisfy supra-national legal and lending standards—a formidable set of hurdles.

We know firsthand the interests of players on both sides of the table. Our clients include national and local governments and taxing authorities, lenders, title insurance companies, hotel operators, investors and developers.

For a wide range of projects, Sutherland attorneys have been the catalysts for expediting agreement on the right balance of:

Credit enhancements and government guarantees,
Tax abatements,
Suspension or modification of work rules and hiring policies,
Duty exemptions on building materials and hotel equipment,
Environmental trade offs, and
Legislative action to improve the quality of titles.

Caribbean and International Tax Experience

Sutherland has long been known as one of the leading tax law firms in the United States. More than 80 of our attorneys focus on tax law and the structuring of tax-sensitive transactions.

Our international tax experience is valuable in resort development, enabling us to provide immediate advice on what is possible and what is not. Our tax attorneys are closely familiar with the tax and commercial laws of many countries. Their work includes:

Assisting the government of Bermuda in tax treaty negotiations with the U.S. Treasury Department.
Creating a financing structure that exempts payments made by a U.S. borrower to a Barbados company from U.S. and Barbados taxes.
Designing a business structure for operations in the Dominican Republic that minimizes tax for U.S. shareholders.
Creating a plan for business operations in Jamaica to provide a local and U.S. tax-efficient structure.
Developing a public and private employee pension plan for the government of St. Maarten.

In addition, we regularly represent Bermuda-based insurance companies that insure risks throughout the Caribbean.