Back in the autumn of 2022, Expedia reported that searches for the upcoming winter season in the Caribbean jumped by 15% compared to same quarter 2021 (which itself was a strong quarter). The hotspots of interest were Ocho Rios (Jamaica) and St. Thomas (US Virgin Islands). In March 2023, Caribbean Journal reported that such autumnal interest had translated into strong actual performances across the region. Regional conferences highlighted that high inflation and interest rates may have cooled investment and particularly debt financing, but owners and operators were taking a long view, believing in the fundamentals of the region. The Caribbean is bouncing back.

In a year of recovery, only one destination suffered any form of decline, namely Los Cabos (-2.6% occupancy and -8% GOPPAR). The standout performers were Cayman Islands (+546% in RevPAR), Santiago (+1,829% in GOPPAR) and Buenos Aires (+5,484% in GOPPAR, although some of this amazing growth was probably exchange rate related).

Despite inflationary pressures, the hotel construction sector remains strong and many new projects are in development. Longer term, there is some uncertainty as economies slow down.

Although there were a few deals across LAC in the last 12 months, reliable data was largely missing. Where transactions may have been few, developers and owners are still busy building new and refurbishing old.

Autumnal interest had translated into strong actual performances across the region.

Many thanks to our friends at HotStats for their back page feature contribution, assessing the positive mood in the Caribbean on the back of strong profitability numbers
in Q1 2023.

About WhiteBridge Hospitality

Whitebridge Hospitality is a specialist advisor to investors, developers and operators in the hospitality industry around the globe. We provide investment, operational and planning advice, and guidance in respect of the entire hospitality spectrum, including: hotels, mixed-use developments, conference and exhibition centres, spas, leisure facilities, casinos, visitor attractions and sporting venues. Our uniquely qualified team can provide services throughout an asset's life cycle, from site selection and acquisition, through master planning and feasibility studies, to operator selection, operational and asset strategy advice, to sale and agency services.

Philip Camble
Director
+44 20 7195 1482
Whitebridge Hospitality

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