CJI Conversation: Grace Bay Resorts CEO Mark Durliat on the Turks and Caicos Market
Turks and Caicos is heading into 2026 after several years of accelerated investment that brought a significant wave of new resort, residential, and private villa development to the market, reshaping both supply and competition across the destination. In this CJI conversation, Mark Durliat, CEO and co-Founder of Grace Bay Resorts, discusses how the market is adjusting after a volatile 2025, where supply risk is emerging and the exciting new developments for the company in Turks and Caicos.
From a capital-cycle perspective, how would you describe where Turks and Caicos sits heading into 2026?
From a capital-cycle perspective, Turks and Caicos appears to be entering a transitional phase heading into 2026. Last year a considerable amount of new investment occurred and more new developments entered the market than many expected. While this brought some exceptional new properties to the destination, it also put pressure on demand.
The growth over the past couple years has raised the awareness of destination. But this has created more competition than many expected, not just in the resort sector, but in the private villa rental space also. The result in 2025 was some confusion in the market and a noticeable impact on rates and occupancy.
We see these factors stabilizing in 2026, while also anticipating that a few of the planned new developments may choose to slow their planning for a period as the country adjusts to the new market and is able to show signs of rate and occupancy growth again.
What are you working on right now at Grace Bay Resorts?
Right now, at Grace Bay Resorts, our focus is on the continued momentum of The Point and Rock House.
Since construction began on The Point in February 2024, the project has moved ahead swiftly, with the oceanfront buildings now rising to the third level. This construction progress has been matched by a strong market response, with more than 75% of the residences already sold. Of the 58 total homes, only eight of the 42 oceanfront condominiums and seven of the 16 private Casitas remain.
Rock House is also continuing to expand with Phase III anticipated to break ground this year. This new phase will introduce a limited release of our highly sought-after oceanfront studio residences, together with an expansion of the glamourous oceanfront Vita restaurant and Cave Bar and lounge, new cabanas for spa treatments and a new pool, right at the edge of Rock House’s dramatic limestone cliff
On the hotel side, is the development pipeline aligned with realistic demand growth — or are there segments where supply risk is beginning to emerge?
We certainly see some supply risk at this juncture, as 2025 saw some weakness in ADR & occupancies driven by the considerable level of new private investment that has produced many new competitors over the past few years. Whereas we expect the top resorts to find stronger footing in 2026, the private rental villa market may cool somewhat over the next year as we absorb the rapid surge in investment in this sector.
Why has Turks and Caicos been so successful at residential resort development?
Residential resort development in the Turks & Caicos has been driven by a few key fundamentals: foreign ownership of land is permitted, the economy uses the US dollar and enjoys excellent year-round airlift to key US cities, has very high-quality real estate offerings and is renowned for its natural beauty and beaches. These characteristics have always been fundamental to our strong residential resort ownership model.
Adding to this, our buyers have developed a strong affinity for the destination, which means there is real demand for personal owner use and makes the ownership model attractive. Finally, our sophisticated buyers have learned that by buying with the right resort developers and operators, they can reasonably expect to offset personal use costs with revenue from buoyant luxury rental programs.
How do you see the residential resort model evolving in Turks and Caicos?
For us, the model is moving toward a more curated, lifestyle-led experience built around quality over quantity. Today’s buyers are prioritizing privacy, and spaces that feel purposeful and personal. Future residential resorts in our niche will have to place greater emphasis on unique architecture, interiors that feel warm but not over designed, and layouts that are inviting yet provide long term rental potential.
How has the financing environment changed for Caribbean resort development, and what types of capital structures are proving most resilient right now?
Financing Caribbean resort development remains challenging, and the projects that are getting done continue to rely heavily on sponsor equity and construction progress payments from real estate sales. Where institutional debt financing is involved, this typically represents a small percentage of total capital needed, and lenders are being very selective on the projects they underwrite.
Some private capital lenders have also emerged as debt sources to fill some of the gap, but at a higher cost.
Grace Bay Resorts has operated in this market for more than two decades and benefits from long-standing institutional relationships that allow access to reasonably priced debt, albeit still a modest share of total project value. Such financing is difficult to secure, and newer entrants may find accessing similar capital more challenging than anticipated.
Design has become a defining element of your recent projects, particularly South Bank. How important do you think architecture and placemaking will be in the next generation of development in Turks and Caicos?
As Turks and Caicos continues to mature, architecture across the islands has grown increasingly bold and expressive. South Bank set an important precedent, demonstrating how innovative design can shape a truly distinctive environment.
At The Point, we have also built on that legacy through our collaboration with award-winning Young Huh Interior Design and SWA Architecture, creating spaces that harmonize landscape, form, and interior expression while feeling elevated and timeless.
Residences at The Point feature thoughtful design, with oversized oceanfront balconies offering dramatic views, expansive internal spaces and thoughtful features such as kitchens with appliances by Subzero and Miele and cabinetry by renowned Italian manufacturer Scavolini, .
The Casitas offer an elevated private experience, each with its own pool, outdoor showers all on a separate parcel of land with elegant landscaping that complements the Caribbean setting.
We believe projects that seek to deliver a truly world class experience will be defined by quality over quantity, with design that feels intentional and not overbuilt. Projects that respect the natural setting while delivering a clear point of view will be the ones that stand out and endure.
Grace Bay Resorts has successfully balanced hotels, residences, and lifestyle-driven projects. How do you think that integrated approach benefits both owners and long-term investors?
For owners, integration offers a rare combination – the autonomy of a private residence with the ease, service, and energy of a luxury resort. It ensures that these communities remain dynamic and well-maintained year-round, creating stability. Hotels generate visibility and ongoing demand, residences drive long-term attachment, and lifestyle elements, from dining to wellness to shared social spaces deepen engagement and protect value.
Do you foresee any future developments on sister islands?
Not at this juncture, but we could be convinced!
What’s your overall outlook for the market in Turks and Caicos in 2026?
Looking ahead to 2026, we expect occupancy and rates to stabilize after an unpredictable 2025. At the same time, we anticipate that new investment may slow slightly as investors take a closer look at underlying market dynamics. Questions around how quickly the market can absorb new supply will likely influence decisions. Real estate will remain in demand, but we expect pricing growth to be more moderate this year.
