cayman islands caribbean hotel sector
The Kimpton Seafire in Grand Cayman.
News

The Cayman Islands Has the Caribbean’s Hottest Hotel Sector

By: Caribbean Journal Staff - February 7, 2019 - 2:10 pm

By Rico Louw

Is the Cayman Islands the hottest hotel market in the Caribbean?

The Cayman Islands experienced the largest rises in the Caribbean in each of the three key performance metrics in 2018, according to data from islands where STR maintains a sufficient reporting sample.

The Cayman Islands saw a 6.4 percent increase in hotel occupancy, a 14.6 percent increase in average daily rates and a 22 percent increase in revenue per available room, according to the STR data.

cayman islands caribbean hotel sector

The Ritz-Carlton, Grand Cayman.

That was followed by Aruba, the only other destination to show a double-digit jump in RevPar, and Curacao, which saw the third largest lift in ADR, at 8.5 percent.

Puerto Rico experienced a decline in occupancy (-2.5%), but a 7.2% rise in ADR.

The data came as the Caribbean hotel industry ended 2018 on a positive note as December performance increases pushed total-year numbers to solid levels when considering the region’s recovery status.

In year-over-year comparisons with December 2017, revenue per available room (RevPAR) in the Caribbean overall rose 5.4%, due to a 3.6% lift in average daily rate (ADR) and a 1.7% increase in occupancy. Demand growth (+3.9%) outpaced supply (+2.2%) for the month, relieving some of the pressure we’d seen on occupancy levels and further solidifying hotelier pricing confidence.

cayman islands caribbean hotel sector

The Baoase luxury hotel in Curacao, which also is seeing strong hotel performance.

When looking at total-year data for 2018, Caribbean hotel occupancy fell 1.1%, but a 1.7% increase in ADR pushed RevPAR growth of 0.6%. Demand and supply were both down, -1.2% and -0.1%, respectively. While 2018 performance was mixed, the results were strong compared with other markets that have experienced a recovery period after a natural disaster.

When looking at other islands’ performance during 2018, Aruba experienced an absolute occupancy level of 75.2%, the highest among the islands, and an ADR level of US$318. Curaçao reached a 71.4% occupancy level and an ADR of US$156, while Barbados posted an occupancy level of 67.1% and an ADR level of US$287.

cayman islands caribbean hotel sector

The Bucuti & Tara Beach Resort in Aruba.

Investment in the region looks to be strong moving forward. As of December 2018, the Caribbean had 44 hotels in construction accounting for 11,760 rooms. Supply is projected to grow 3.9% in 2019, according to STR’s latest Caribbean forecast.

Additional questions regarding hotel data reporting in the Caribbean can be directed Rico Louw at rlouw@str.com.

Popular Posts antigua long bay

25 Perfect Caribbean Beaches to Add to Your Summer Bucket List

There’s nothing like a Caribbean beach in summer. The crowds thin out, the winds relax, and the islands start breathing in a different way. The beaches you thought you knew feel new again— stretches of sand once packed with winter […]


The 15 Best Hotels in Trinidad and Tobago, From Hidden Eco-Retreats to Luxury Towers

trinidad and tobago hotels where to stay

From Port of Spain to Tobago’s quiet coasts, these are the places to check in now No two Caribbean islands are quite like Trinidad and Tobago—and no two hotels here feel the same. This is a destination of contrast: Carnival […]


This Marriott All-Inclusive Resort Is Coming to Barbados —  And You Can Book It With Points

new brand for the caribbean

Barbados has long been a haven for adults in search of refinement — the kind of place where luxury and culture blend in quiet, confident harmony. Now, that ethos is becoming the foundation of a new resort concept that aims […]


Related Posts vida cayman

This Caribbean Hotel Will Give You 50 Percent Off—If You Hand Over Your Phone

The air feels different the moment you step onto the deck. It’s quieter. Calmer. Like the world shrank to the sound of the sea and the breath in your chest. And your phone? That’s gone—locked away in a drawer somewhere […]


Why Guadeloupe Is a Caribbean Island Hopping Paradise

guadeloupe is an island hopping paradise

Guadeloupe isn’t one island—it’s a self-contained archipelago of six inhabited isles (and countless islets and cays), each with its own rhythm, landscape, and identity. Set in the French Caribbean, Guadeloupe is unified by a strong Creole and French heritage, yet […]


The Story from the Latest Caribbean Hotel Data: Occupancy Lower, Rates Up Slightly 

montego bay

Caribbean hotel occupancy is declining. We won’t sugarcoat it (although it’s far more market-dependent, with many islands actually seeing climbs). But overall, region-wide, it’s down. That’s the story from the latest data from STR.  Occupancy in May was 61.7 percent […]