Using the Wave: Key Takeaways from Caribbean Resort Funding Convention And Operations Summit 2024

The 2024 version of the Caribbean Hotel Investment Conference & Operations Summit (CHICOS) introduced over 300 attendees to the Wyndham Grand Barbados Sam Lord’s Fort All Inclusive Resort for a number of days of networking and business insights from key stakeholders within the area. Whereas final yr’s CHICOS convention targeted on the exponential progress in customer arrivals and common charges within the area, this yr’s CHICOS theme, “Using the Wave,” highlighted the record-breaking RevPAR and new growth urge for food within the area. A number of key takeaways from this yr’s convention are introduced under.

Document-Breaking RevPAR Progress

The Caribbean area benefited from file arrival numbers in 2023, and arrivals by means of the September 2024 year-to-date interval elevated by 8.0% over the identical interval in 2023. This progress in arrivals has in flip supported continued progress of RevPAR. Over the past six trailing-twelve-month (TTM) intervals by means of September, the Caribbean has maintained a compounded annual RevPAR progress fee of 5.9%, in response to information from STR. The newest TTM interval reveals continued will increase in all efficiency metrics, together with file occupancy, ADR, and RevPAR ranges, with RevPAR 6.0% greater than the prior TTM interval.

RevPAR for the Caribbean Has Reached New Peak in 2024

Supply: STR
 

When evaluating the compounded annual RevPAR progress for every island within the Caribbean over the past six TTM intervals by means of September, the Bahamas and Dominican Republic lead in RevPAR progress. Each islands profit from their reputation with vacationers from the USA (the first supply market to the Caribbean) and their areas close to the U.S. Each island has totally rebounded to pre-COVID ranges apart from Trinidad and Tobago, which has nearly recovered. In the newest TTM interval, almost each island has carried out higher than the identical interval in 2023. The exceptions to this pattern are the U.S. Virgin Islands (USVI), which has skilled some downward stress on ADR regardless of double-digit visitation will increase, and extra considerably, the Bahamas and Jamaica, which have been each affected by a U.S. Division of State security alert and corresponding destructive media protection within the first quarter of 2024.

Most Islands Experiencing Vital RevPAR Progress in 2024 and in Final Six Years

% RevPAR Change—TTM Sep 2023 vs. TTM Sep 2024

Supply: STR, HVS Analysis

Six-Yr RevPAR Compounded Annual Progress Charge

Supply: STR, HVS Analysis

The Significance of Technology Z

One of the vital outstanding subjects at CHICOS 2024 was the rising affect of Technology Z on the journey and hospitality business. In keeping with analysis from Hopper, Gen Z now includes 21% of the American inhabitants. As a quickly rising market phase, Gen Z vacationers are reshaping the business dynamics with distinctive preferences and values. Key Gen Z tendencies embrace delaying marriage and kids, prioritizing affordability, being digital natives who rely closely on social media, favoring sustainability practices, and sustaining a brand-neutral stance. Though members of Gen Z might not have the best earnings ranges, these people are inclined to dedicate a big share of their spending to journey, successfully opening up alternatives for brand new, non-traditional lodging sorts.

What distinguishes Gen Z vacationers essentially the most is their concentrate on distinctive, memorable, and culturally enriching experiences, and these preferences provide an thrilling alternative for the Caribbean to draw Gen Z guests. With its pure magnificence, wealthy tradition, and various accessible actions, the area is properly suited to satisfy these vacationers’ demand for significant, genuine experiences. Space resort and resort operators should subsequently discover methods to concentrate on the distinctive choices of the Caribbean, resembling native delicacies, snorkeling adventures, and wellness actions. By combining these experiences with sustainability initiatives and extra social media engagement, the Caribbean can place itself as a high vacation spot for the more and more necessary Gen Z market phase.

The Continued Surge in All-Inclusive Journey

The Caribbean all-inclusive phase continues to thrive, with the continued growth of latest properties, predominantly on islands with robust airlift and excessive visitor-arrival numbers from the U.S. In keeping with Lodges.com, on-line searches for all-inclusive lodges have elevated by 60%. This pattern is pushed by the need for minimal stress and simplified bookings, together with luxurious experiences. Vacationers are prioritizing all-inclusive packages that characteristic native delicacies, emphasizing the significance of integrating genuine meals experiences. The Caribbean stands out as a really perfect alternative for all-inclusive journey, significantly for good friend teams and multigenerational households in search of a seamless trip with simplified budgeting. To stay profitable, all-inclusive lodges should concentrate on standing out with wellness facilities, a robust model identification, and customized choices. As well as, with the rise of Technology Z, these resorts must embrace the newest shopper tendencies. Fashionable vacationers are trying past comfort, in search of boutique-style stays that emphasize sustainability, wellness, and cultural immersion. Profitable properties are encouraging vacationers to discover the encircling group, including significant engagement to their experiences.

Extra Favorable Financing Situations

One other recurring subject in the course of the convention was the U.S. Federal Reserve’s choice to decrease rates of interest by 50 foundation factors this yr (the primary such easing in 4 years), which has vital implications for the Caribbean hospitality business. Decrease borrowing prices create a extra favorable surroundings for growth by broadening choices for capital stack buildings and decreasing the monetary limitations for brand new initiatives. This shift is especially impactful for the Caribbean as a result of the area has demonstrated resilience and sustained reputation amongst traders and vacationers alike. With elevated entry to reasonably priced capital, builders are higher positioned to pursue modern initiatives. Moreover, the discount of borrowing prices can appeal to new traders and builders who might have beforehand been hesitant to enter the market, encouraging larger competitors within the area.

Using the Wave

At this yr’s CHICOS occasion, optimism was palpable because the Caribbean area continues to “experience the wave” of its rising year-round attraction, fueled partially by shifts in journey preferences. Document-breaking RevPAR progress is supported by growing ADR, at the same time as challenges persist, resembling greater prices for capital, building, and labor. The area’s resilience is additional bolstered by vital will increase in airlift, with new direct routes from U.S. cities, and initiatives by native governments to develop sights. These efforts intention to draw worldwide vacationers and align with resort manufacturers that resonate with these company.

The rising affect of Technology Z can also be reshaping business dynamics, whereas a strong growth pipeline is supported by rising customer arrivals and main model investments. These initiatives span European-plan, all-inclusive, and luxury-branded residential choices. Though considerations stay concerning the area’s capacity to maintain the robust ADR progress recorded for the reason that pandemic, the outlook is constructive. With thrilling new lodges set to open within the coming years and worldwide and intra-island connectivity enhancing, the Caribbean is properly positioned to keep up its momentum and showcase its resilience.

Click here to view the full CHICOS 2024 presentation.
 

About CHICOS

The Caribbean Hotel Investment Conference & Operations Summit (CHICOS) is the premier hospitality convention within the area. Having simply accomplished its thirteenth version in Barbados in 2024, CHICOS brings collectively tons of of regional and worldwide traders and operators, in addition to the area’s main decision-makers. Additionally collaborating as attendees or audio system are authorities representatives, opinion leaders, builders, bankers and different lenders, tourism officers, funding fund representatives, resort model executives, tourism builders in search of traders, franchise and operations firm delegates, private and non-private establishment members, consultants, advisors, architects, and designers. Convention attendees community and talk about the area’s markets and potentialities, whereas analyzing crucial tendencies that may have an effect on their funding choices.

The 14th version of CHICOS will happen November 9–11, 2025, on the Curaçao Marriott Beach Resort in Curaçao.

In regards to the Visitor Authors

Meropi Vrantzoglu is a graduate scholar at Boston College (BU), pursuing a grasp’s diploma in hospitality actual property. Her world perspective is formed by her worldwide background, as she is half Greek and half German, grew up in Dubai, and earned a bachelor’s diploma in worldwide enterprise. Because of this, Meropi brings a novel understanding of various cultures and markets to her work. At BU, she is gaining hands-on expertise by means of feasibility and growth initiatives based mostly on real-world hospitality challenges. Meropi is captivated with contributing to the way forward for the hospitality business and creating particular locations the place folks can join and make lasting reminiscences.

Sara Saad is a second-year scholar at Boston College, pursuing a serious in hospitality with a focus in actual property and a minor in enterprise administration. Her educational journey is complemented by hands-on expertise with internships at famend properties, together with the Steigenberger ALDAU Resort in Egypt, Hyatt Regency Cairo West, and Hotelplan Suisse. These experiences have offered her with helpful insights into the hospitality business’s various parts, from luxurious resort operations to journey planning and customer support. She is captivated with constructing a profession within the hospitality and actual property sectors and goals to develop her capabilities with sensible experiences.

Kayla Lamar is a graduate scholar at Florida Worldwide College, incomes her grasp’s diploma in hospitality administration with a specialization in resort actual property growth from the FIU Chaplin Faculty of Hospitality & Tourism Administration. Kayla has labored professionally inside the discipline of training for roughly ten years, with expertise instructing overseas and varied grade ranges domestically. She has volunteered with quite a few organizations, together with the Miami E book Truthful. Kayla lately shifted her consideration to the resort business and intends to concentrate on resort growth.

About Kristina M. D’Amico 

Kristina is Managing Director and Chief of the agency’s Caribbean Area consulting and valuation apply. Kristina’s vital worldwide consulting, advisory, and appraisal expertise contains belongings within the Caribbean Basin throughout 23 Caribbean islands, in addition to the Riviera Maya area of Mexico and plenty of nations in Latin America. Given her analytical abilities, her creative-thinking capacity, and her aptitude for fixing issues that come up in complicated initiatives, purchasers significantly worth Kristina’s insights and proposals relating to resort room counts, product positioning, facilities, and branding for a lot of varieties of proposed properties, together with lodges, all-inclusive resorts, and mixed-use resorts with complementary actual property. Contact Kristina at (305) 338-0354 or kdamico@hvs.com.