Caribbean Hotel Performance Declines In 2016
The Caribbean hotel industry reported negative year-over-year results in the three key performance metrics for total-year 2016, according to data from STR.
Compared with 2015, the Caribbean’s occupancy decreased 2.3% to 66.7%, and average daily rate (ADR) was down 0.3% to US$201.50. As a result, revenue per available room (RevPAR) fell 2.6% to US$134.48. The absolute occupancy level was the lowest in the Caribbean since 2013 (66.7%).
“After a record year in 2015, Caribbean hotel performance slipped in 2016,” said Stephen Hennis, STR’s VP of consulting and analytics. "While many factors affected performance, the Zika outbreak and an active hurricane season were the primary issues behind declining demand. Meanwhile, a weakened exchange rate for European and Canadian currency resulted in a lack of ADR growth.”
February was the highest occupancy month of 2016 (77.0%), while the highest absolute ADR was reported in December (US$261.31). March produced the highest absolute RevPAR (US$196.56).
October was the lowest month of the year for occupancy (54.6%). September reported the lowest absolute values for ADR (US$142.65) and RevPAR (US$78.29).
STR’s census database shows more than 240,000 rooms in more than 1,900 hotels in the Caribbean. The number of rooms in the region grew by more than 2,700 since December 2015, marking the third straight year with supply growth above 1.0%.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.
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