Dominican Republic, Cuba Leading Caribbean Hotel Boom
Sometimes it seems as if there’s a new hotel project launching in the Caribbean every week.
And that’s because the Caribbean continues to see rapid growth in hotel development, led by the region’s traditional trio of high-volume travel destinations.
The Caribbean’s hotel boom keeps going strong, with the Dominican Republic and Cuba leading the way, according to a new report.
Hotel analytics leader STR says there are more than 31,787 rooms in construction in the Caribbean-Mexico, with the Dominican Republic, Cuba and Jamaica leading the way within the Caribbean. (It should be noted that these totals include rooms actually under construction, not those in the planning stages).
The Dominican Republic has a total of 6,356 rooms under construction across the country — about 8.4 percent of the destination’s existing supply.
That’s no surprise for keen followers of the region’s hotel industry, with the Dominican Republic’s longtime focus on attracting new hotel investors continuing to pay off — with its primarily all-inclusive model still a highly attractive draw for developers.
Cuba is next with 1,616 rooms under construction, or about 2.5 percent of its current supply, while Jamaica has 1,425 rooms in construction, representing 5.6 percent of the country’s existing hotel stock.
Of course, each of those destinations’ totals is dwarfed by Mexico, which has 16,699 hotel rooms in construction, STR said.
Upper-tier hotels are leading the way, according to STR, with the “upscale” hotel segment accounting for 7,048 rooms in the regional construction pipeline.
That’s followed by the luxury segment, which has 6,958 rooms in construction in the wider region, along with 6,606 rooms in construction in the “upper upscale” segment.
The hotel construction growth in the Caribbean continues to be a positive sign for the region and its continued ability to attract investment.
It will also mean a renewed focus on strong marketing efforts and ensuring that the region continues to secure new airlift to bring seats for all those new rooms.
— CJ
