Caribbean Hotels Showed Mixed Results in the First Quarter
The Caribbean hotel industry reported mixed results through the first three months of 2025, with revenue metrics showing growth despite a dip in occupancy.
According to new data from analytics firm STR, year-to-date occupancy for the region declined 1.4 percent to 73.3 percent compared to the same period in 2024. Meanwhile, average daily rate (ADR) increased 3.2 percent to $423.83 and revenue per available room (RevPAR) rose 1.8 percent to $310.59.
Hotel supply in the region remained relatively stable, up 0.9 percent year-over-year, while demand saw a slight decline of 0.5 percent.
Overall room revenue rose 2.7 percent to more than $7.99 billion.
The total hotel census included 2,145 properties with 285,679 rooms, and STR reported a 30.7 percent participation rate in the STAR benchmarking program.
Despite the softening in occupancy, the increase in rates and RevPAR suggests continued resilience in pricing and traveler spend across key Caribbean markets.
In March, occupancy fell by 2.8 percent, with rates up 1.5 percent and revenues down 1.3 percent.
