The Caribbean hotel industry reported lower occupancy but record-breaking average daily rate (ADR) and revenue per available room (RevPAR) during 2019, according to data from STR.
Compared with 2018:
- Occupancy: -2.7% to 63.7%
- ADR: +5.6% to US$218.82
- RevPAR: +2.8% to US$139.45
The absolute occupancy level was the lowest in the Caribbean since 2011, but the ADR and RevPAR values were the highest for any year on record in the region.
“Despite six straight months of RevPAR declines between June and November, Caribbean hotels were able to reach a slight increase in December to end the year on a positive note,” said Rico Louw, STR’s client account manager. “The decline in performance during those earlier months was likely due to the effects of Hurricane Dorian and the negative perception impact that followed, as well as continued supply growth in the region. Hoteliers have been able to maintain rates despite an abundance of new supply and muted demand.”
In absolute values, March was the Caribbean’s top-performing month for each of the three key performance metrics: occupancy (75.0%), ADR (US$276.08) and RevPAR (US$207.13). February and January were the highest RevPAR growth months at +10.6% and +10.4%, respectively.
September was the lowest month of the year for occupancy (47.1%), ADR (US$148.53) and RevPAR (US$70.01) as well as the worst month for RevPAR comparisons (-6.2%).
When looking at individual islands, Turks & Caicos Islands experienced the highest rise in occupancy (+4.3% to 62.7%) and RevPAR (+12.8% to US$653.75).
The Cayman Islands posted the largest lift in ADR (+8.3% to US$466.06).
Dominican Republic saw the steepest declines in each of the three key performance metrics: occupancy (-8.0% to 67.7%), ADR (-3.5% to US$136.10) and RevPAR (-11.2% to US$92.12). Performance levels were pressured by supply growth (+2.6%) in addition to lost demand (-5.6%), and the island continues to lead the region in construction activity with 5,403 rooms being built.
Overall, there are 13,033 rooms in construction in the region.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces.For more information, please visit str.com.
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