Trend trackers in the region reported enormous growth expectations in September 2023, with Dom Rep leading the way (+54% in international arrivals and +39% in groups expected in Q4 2023, compared to the same period in 2019) and US and Canadian demand dominating air bookings. By contrast, traffic to Cancun was showing signs of a slowdown in the same period. As a further sign of its huge popularity, last year Dom Rep became the first nation in the Caribbean to top 10m visitors in a single year and the growth trajectory was ongoing in early 2024.
Performance levels have been a mixed bag around the region, from a high of +45% growth in GOPPAR in Santiago to a low of -22% in Los Cabos. Highest ADR growth in USD terms was achieved by Cayman Islands (+16%) and highest occupancy level in Aruba (76.8%).
After some economic slowdowns across many parts of the region in 2023, the forecasts for 2024 and 2025 are more encouraging, which in turn may have an upward impact on development costs in certain markets.
There were some deals in LAC in the last 12 months but the lack of transparency means that we could only report on a few. Meanwhile, refurbs, extensions and even new builds are ongoing thereby keeping the sector busy in other ways. Performance levels have been a mixed bag around the region. Many thanks to our friends at HotStats for their back page feature contribution, a deep-dive into Central America as the region’s performance levels level off and ‘normalise’.
Philip Camble – Director, Whitebridge Hospitality – Editor, LAC Hotels Monitor
About WhiteBridge Hospitality
Whitebridge Hospitality is a specialist advisor to investors, developers and operators in the hospitality industry around the globe. We provide investment, operational and planning advice, and guidance in respect of the entire hospitality spectrum, including: hotels, mixed-use developments, conference and exhibition centres, spas, leisure facilities, casinos, visitor attractions and sporting venues. Our uniquely qualified team can provide services throughout an asset’s life cycle, from site selection and acquisition, through master planning and feasibility studies, to operator selection, operational and asset strategy advice, to sale and agency services.
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