ADR and RevPAR
CARIBBEAN PERFORMANCE METRICS 2007-2012
Occupancy 72.6 % 68 % 63.9 % 60.2 % 61.9 % 66.3 % www . hotelsmag . com October 2013 HOTELS 9
GLOBAL UPDATE other destinations ,” says Scott Smith , senior vice president , PKF Consulting USA .
New deals In July , Hyatt Hotels Corp ., Chicago , announced it is entering the Caribbean ’ s allinclusive market via a US $ 325 million investment in Playa Hotels & Resorts , Fairfax , Virginia . At the same time , LVMH Moet Hennessy Louis Vuitton SA , Paris , purchased the 39-room Hotel Saint-Barth Isle de France from majority owner Adventurous Journeys Capital Partners and others for an undisclosed sum .
Kimpton Hotels & Restaurants , San Francisco , also announced in July that it is entering the Caribbean after having signed an agreement with Dart Realty to manage a 263-room hotel on Seven Mile Beach in Grand Cayman , Cayman Islands , set to open in 2016 .
“ Cayman has great access to cities we already have hotels in with direct flights to many U . S . East Coast cities , so it was a logical place to expand ,” says Kimpton CEO Mike Depatie . “ Airlift is a real challenge in other places , but Cayman is served nonstop by 56 U . S . flights a week , and that matters .”
Carlson Rezidor Hotel Group says it is in negotiations to expand in the Dominican Republic and Puerto Rico . “ We expect to finalize agreements in the next few months to announce some new business hotels for our Radisson and Park Inn by Radisson brands ,” says Thorsten Kirschke , president , Americas , Carlson Rezidor Hotel Group .
In addition to U . S . companies , much of the new investment in the Caribbean has been intra-regional . Sandals Resorts International , Montego Bay , Jamaica , has been actively investing in renovating its existing portfolio , including a US $ 100 million capital investment in the 300-room Sandals LaSource Grenada Resort & Spa set to open in December . “ Lift from new markets is an important challenge , particularly as we expand into more exotic Caribbean destinations like Exuma , in the Bahamas ’ Out Islands , and Grenada ,” says Sandals CEO Adam Stewart .
Given the airlift challenges , developers and hotel companies are primarily focusing on the Caribbean markets with the best airlift . These include Puerto Rico , the Dominican Republic , Jamaica , New Providence , Grand Bahama and Grand Cayman . Airlift to the entire Caribbean region took a hit this year when Executive Airlines pulled out of its Puerto Rico hub , and other airlines have been slow to fill the lost routes . “ Islands that do not have airlift will continue to struggle to build occupancy ,” Smith says . “ Those secondary or tertiary markets that take one extra air or boat trip to get to are the most affected .”
FINANCING IS STILL DIFFICULT IN THE CARIBBEAN .
U . S . LENDERS HAVE MOSTLY WALKED AWAY FROM THE REGION BUT ARE STARTING TO QUIETLY LOOK BACK .”
– KENNY BLATT , CARIBBEAN PROPERTY GROUP
ADR and RevPAR
250
200
150
100
50
0
US $ 237.52 US $ 172.51
CARIBBEAN PERFORMANCE METRICS 2007-2012
US $ 221.28 US $ 150.50
US $ 183.32 US $ 117.15
US $ 163.29 US $ 98.45
US $ 169.54 US $ 105.02
US $ 175.62 US $ 116.42
2007 2008 2009 2010 2011 2012
ADR US $ RevPAR US $
Occupancy 72.6 % 68 % 63.9 % 60.2 % 61.9 % 66.3 % www . hotelsmag . com October 2013 HOTELS 9