Destination and Resort News: The Caribbean Hotel Industry Improved Its Financial Recovery in 2022

Caribbean hotels saw a booming performance in 2022, as practically all travel restrictions were eased after being a massive travel obstacle for several nations throughout 2021.

Accor reports that full-year occupancy was 60.7%, increasing 36.7% from the previous year but decreasing significantly (-3.2%) from 2019. The region’s occupancy peaked recently in December (66.1%) due to holiday tourism. It reached its lowest point in September (48.9%) a regular calendar occurrence in the middle of hurricane season.

Until 2022, the Caribbean hotel business showed signs of improvement.

For the year, Curacao (70.7%), Turks & Caicos (70.3%), and Puerto Rico (69%) had the highest occupancy rates among important nations in the area. With a +12.3% increase over 2019, Turks & Caicos also saw the best occupancy recovery in the area.

Due to travel restrictions that remained throughout most of 2022, the worst performers, St. Kitts & Nevis (26.3%), Anguilla (37.3%), and the Cayman Islands (46.4%), continued to suffer. For instance, the occupancy rate in the Cayman Islands increased from 15.4% in January 2022 to 76.5% in December 2022. The least recovered country in terms of occupancy was St. Kitts and Nevis, whose statistic was 39.5% below pre-pandemic levels.

Average daily rate (ADR) and revenue per available room (RevPAR) (in US dollars), which were up 27.4% and 31.6%, respectively, in nominal terms, were both fully recovered in the Caribbean hotel business. Among the Americas subcontinents as defined by STR, such increases were actually the biggest before accounting for inflation. The Bahamas saw the highest RevPAR growth throughout 2019 (+53.7%), followed by Saint Lucia (+46.6%) and Saint-Barthelemy (+42.7%). The highest ADR was recorded in Saint-Barthelemy at $2,299.23, a 49.4% rise over 2019 and second only to Saint Lucia’s 54% increase over the pre-pandemic comparative.

Most Caribbean nations saw a complete RevPAR recovery in 2022.

Nassau has one of the best market performances, with many resorts worldwide. With around 14,300 rooms under development, the Caribbean’s resort supply continues to expand, and 9,035 are scheduled to debut in 2023. The Dominican Republic leads the list of nations with rooms under development, with 3,618 rooms spread across 17 buildings, followed by Jamaica, with 2,303 rooms spread across four sites.

The region is already off to a solid start to the new year when looking at month-to-date data through January 28, 2023, as occupancy (69.8%) was higher than both 2022 (53.6%) and 2019 (69.5%). ADR and RevPAR, about $350 and $245, respectively, also made a major impression in January.

The majority of limitations are no longer an option. Therefore, Caribbean hotels may anticipate continuing their recovery from 2022. International travel from other nations will be something to watch during the year as the sector lacks in 2022, even if the region benefits immensely from the nearby United States.

Fantastic Caribbean Islands Resorts

Riu Palace Aruba

This luxury Caribbean hotel is located on the beautiful island of Aruba.

Aruba has a diverse population consisting of people from various ethnic backgrounds, including Arawak, Spanish, Dutch, and African. This diversity has led to a rich and varied society where people celebrate their unique traditions and customs.

Aruba is a constituent country of the Kingdom of the Netherlands and blends Dutch and Caribbean cultures. Dutch colonial architecture can still be seen throughout the island, while local cuisine combines Caribbean and European flavors.

Aruba is home to several natural wonders, including the Arikok National Park, which covers over 20% of the island and is home to a diverse range of flora and fauna. The island also has several amazing geological formations, such as the Natural Bridge and Natural Pool.

Aruba is known for its vibrant nightlife, with numerous bars, clubs, and casinos. The island’s casinos are particularly popular; many stay open 24 hours daily.

Riu Palace Aruba is an adult-only Caribbean hotel, which means that guests must be 18 years or older to stay there. This feature makes the resort ideal for couples or groups of friends looking for a quiet, relaxing getaway.

Riu Palace Aruba embraces the local Caribbean culture and traditions, which is reflected in the resort’s architecture, cuisine, and entertainment.

Dreams Curacao

Curacao is a melting pot of different cultures, including Dutch, Spanish, African, and South American. This has resulted in a rich heritage, which is evident in the island’s architecture, food, and music.

The buildings in Curacao are painted in bright and bold colors, making the island a colorful and vibrant destination. The architecture is a blend of Dutch and Spanish styles, with some Caribbean influences.

Curacao is famous for its bright blue liqueur, which is made from the peels of the laraha fruit. The liqueur has a citrusy flavor and is used in many cocktails.

Dreams Curacao is a Caribbean hotel that is part of the Unlimited-Luxury® brand by AMResorts. This means that guests can expect high-end amenities and services, including 24-hour room service, a stocked mini-bar, and access to gourmet restaurants and bars.

The Caribbean hotel offers a unique experience, featuring local art and décor throughout the property. Guests can also participate in activities such as cooking classes and salsa dancing lessons to learn more about the local culture.

Dreams Curacao has a casino on site, which offers a variety of table games and slot machines for guests who enjoy gambling.