REGIONAL PROFILE
RISING
tide
THE CARIBBEAN SEES SOLID GROWTH
AS IT BRACES FOR CUBA ’ S EXPLOSION AND MONITORS ZIKA .
By BARBARA BOHN , MANAGING EDITOR
CARIBBEAN
U
. S . hotel companies circling in the waters off Florida ’ s coast might notice a few things when they survey what until recently was utterly forbidden territory .
First , a conveniently located country edged with white-sand beaches , drenched in sunshine and culture , and bursting with seemingly endless revenue opportunities . Second , an awful lot of Meliás , among other international brands .
Cuba is one of many islands in the Caribbean , and it ' s not virgin territory – but it is the largest , and the one with the most immediate potential upside . Its domintion of the headlines , at least in the U . S ., is only part of the story of the region .
‘ VERY STRONG ’ “ The market continues to be very strong in the Caribbean despite the challenges ,” says Parris Jordan , vice president at HVS New York and managing director of HVS
Bahamas . Challenges primarily include the Zika virus , which grips a swath of the Caribbean and Latin America . The Caribbean reversed six consecutive years of ADR and RevPAR growth in the first half of 2016 , Jordan says , but demand rebounded . “ When the numbers started to decrease – and it was overblown a bit – the investors saw those numbers decline and decided to take a step back ,” says Jordan , who advocates a longer-term perspective .
While companies acknowledged small hits to group business , the virus hasn ’ t appeared to stymie development . Hilton has nearly 20 properties with more than 6,800 rooms open , and 10 hotels in its pipeline as of September , representing 1,500 rooms . “ We have great expectations for St . Thomas , St . Kitts , the Dominican Republic , Aruba and Dominica ,” says Juan Corvinos , a managing director for development in the region .
Wyndham Hotel Group plans Wyndham Grands in Barbados and Nevis , both opening in 2019 . It also has a deal to bring its second Tryp to the region in Trinidad , and it ’ s looking to plant a flag in Jamaica .
In 2016 , Marriott International signed hotels in Antigua , Dominica , Puerto Rico , Jamaica , Trinidad and Tobago , and the first Courtyard resort in Aruba . Of Starwood ’ s brands , a Ritz-Carlton Reserve and St . Regis are coming to Bermuda , and a Ritz-Carlton is coming to Turks and Caicos , says Alejandro Acevedo , vice president of development in Mexico and the Caribbean . On the resort side , Marriott is looking in the Dominican Republic , Jamaica and Barbados ; on the business side , San Juan , Puerto Rico , and Santo Domingo , Dominican Republic have further potential .
In the Bahamas , the troubled Baha Mar resort ’ s Grand Hyatt set to open in April , and two other hotels open later this year .
Barcelo Hotel Group has nine properties in the Caribbean , mostly in the Dominican
30 hotelsmag . com March 2017