New hotel construction is a sign that investors and entrepreneurs are optimistic about travel, tourism, and financial stability. In January, the Caribbean/Mexico region reported 31,787 hotel rooms in construction, which is a 26.9% increase year-over-year.
Data published in the most recent STR Pipeline Data Report shows 152 projects representing 31,787 rooms in construction as of the end of January 2020.
A majority of the region’s rooms in construction are in the upper-tier segments. Of the three, upscale projects represented the largest percentage increase (+70.1%) in activity year-over- year.
The upscale segment accounts for 7,048 new rooms, the luxury segment accounts for 6,958 new rooms, and the upper upscale segment accounts for 6,606 new rooms to be added to the Caribbean/Mexico region.
Four countries in the region reported more than 1,000 rooms under construction. Mexico led with 16,699 rooms, which represented 4.0% of the country’s existing supply, followed by the Dominican Republic (6,356 rooms, 8.4% of existing supply), Cuba (1,616 rooms, 2.5% of existing supply), and Jamaica (1,425 rooms, 5.6% of existing supply).
For full-year 2019, the Caribbean region as a whole actualized an occupancy of 63.7%, down -2.7 % year-over-year. The average daily rate of $291, grew 5.6% resulting in a positive RevPAR growth.
In Grand Cayman, the 351-room Grand Hyatt Grand Cayman Hotel & Residences is expected to debut by the fourth quarter 2020.
Brooke Meyer is the managing partner of Caymera International, a Caymanian-owned hospitality and tourism consulting and advisory firm. Visit Caymera at www.caymeragroup.com or email firstname.lastname@example.org for more information.