Developers and investors often overlook the Caribbean hospitality market, uncertain about its viability and profitability. 2023 proved to be a record-breaking year, showcasing unprecedented growth and opportunities. Read on to find out why now is the perfect time to develop in this thriving market.
The Caribbean saw a remarkable 99% increase in hotel projects since 2019, outperforming other regions’ revenue and profit generation.
According to STR data through the end of 2023, the region has 28,163 projects under construction (up 116% from 2019), 15,295 projects in the final planning stages (up 47% from 2019), and 15,758 projects in the planning stages (up 151% from 2019).
At Miami’s 15th annual Caribbean Hotel Resort Investment Summit (CHRIS), experts highlighted the Caribbean hotel sector’s record performance in 2023. Key factors include:
- Revenue and Profit Growth: The Caribbean outperformed other regions in revenue per occupied room and profit margins, reflecting strong post-COVID recovery and growth potential.
- Traveler Preferences: High demand for outdoor experiences and resort amenities drove occupancy and revenue, with U.S. travelers viewing the Caribbean as an accessible escape.
- Cost Management: Profit margins increased due to tight expense control despite rising labor costs being less severe than in the U.S.
- Travel Demand: The Caribbean led global recovery in international arrivals, surpassing 2019 levels by 3%, with significant growth in airlift capacity, especially from the U.S.
- Hotel Development: The hotel construction pipeline substantially increased, with notable growth across all market segments, particularly in midscale and economy sectors.
LUXURY BEACHFRONT RESORT AND VILLAS – TRINIDAD AND TOBAGO
HAMPTON BY HILTON – ST. THOMAS, VI
At BASE4, we specialize in helping developers navigate and capitalize on the booming Caribbean hospitality market.
BASE4 | Hotel Experts
Did you know we have staff in one of the best-performing Caribbean locations? Our presence in the Dominican Republic allows us to leverage local expertise and resources, ensuring exceptional service delivery for our clients. At BASE4, we are committed to providing all services in-house, guaranteeing seamless collaboration and unparalleled results. By integrating our Caribbean team into our global operations, we continue to enhance our ability to build faster and more efficiently, no matter where your project is located.
Thank you,
Blair Hildahl
BASE4 Principal
608.304.5228
BlairH@base-4.com
