Supply Growth Pressures Caribbean Hotel Occupancy
By Rico Louw
CJ Contributor
May marked the Caribbean’s second-straight month with a decline in hotel occupancy levels, and growth in new inventory was the main reason why.
However, hotelier pricing confidence has kept overall performance in positive territory.
In year-over-year comparisons with May 2018, occupancy dropped 1.9% due to supply (+3.5%) outpacing demand (+1.6%). Fortunately, average daily rate (ADR) rose 6.4%, pushing revenue per available room (RevPAR) up 4.4%.
ADR and RevPAR have now grown for seven straight months in the region. STR’s 2019 forecast for the region predicts a slight decrease in occupancy (-0.8%) but a 1.1% increase in ADR and a 0.3% lift in RevPAR.
In the destinations where STR maintains a sufficient reporting sample, the Bahamas experienced the highest rise in occupancy (+19.2%). Dominica posted the largest lifts in ADR (+31.6%) and RevPAR (+48.2%).
Puerto Rico saw the steepest decline in occupancy (-14.3%), which led to a double-digit drop in RevPAR (-15.2%). ADR in the destination fell 1.1%.
Year to date through May 2019, Puerto Rico has seen declines in occupancy and RevPAR, -10.0% and -2.0%, respectively, but an 8.9% increase in ADR.
There are currently 49 hotels accounting for 12,039 rooms in construction in the Caribbean.
Additional questions regarding hotel data reporting in the Caribbean can be directed Rico Louw at rlouw@str.com.
