Driving the Wave: Key Takeaways from Caribbean Resort Funding Convention And Operations Summit 2024

The 2024 version of the Caribbean Resort Funding Convention & Operations Summit (CHICOS) introduced over 300 attendees to the Wyndham Grand Barbados Sam Lord’s Citadel All Inclusive Resort for a number of days of networking and trade insights from key stakeholders within the area. Whereas final 12 months’s CHICOS convention centered on the exponential development in customer arrivals and common charges within the area, this 12 months’s CHICOS theme, “Driving the Wave,” highlighted the record-breaking RevPAR and new improvement urge for food within the area. A couple of key takeaways from this 12 months’s convention are offered beneath.

Report-Breaking RevPAR Development

The Caribbean area benefited from document arrival numbers in 2023, and arrivals by the September 2024 year-to-date interval elevated by 8.0% over the identical interval in 2023. This development in arrivals has in flip supported continued development of RevPAR. During the last six trailing-twelve-month (TTM) intervals by September, the Caribbean has maintained a compounded annual RevPAR development charge of 5.9%, in line with knowledge from STR. The newest TTM interval reveals continued will increase in all efficiency metrics, together with document occupancy, ADR, and RevPAR ranges, with RevPAR 6.0% larger than the prior TTM interval.

RevPAR for the Caribbean Has Reached New Peak in 2024

Supply: STR
 

When evaluating the compounded annual RevPAR development for every island within the Caribbean over the past six TTM intervals by September, the Bahamas and Dominican Republic lead in RevPAR development. Each islands profit from their reputation with vacationers from america (the first supply market to the Caribbean) and their places close to the U.S. Each island has totally rebounded to pre-COVID ranges aside from Trinidad and Tobago, which has nearly recovered. In the newest TTM interval, almost each island has carried out higher than the identical interval in 2023. The exceptions to this pattern are the U.S. Virgin Islands (USVI), which has skilled some downward strain on ADR regardless of double-digit visitation will increase, and extra considerably, the Bahamas and Jamaica, which have been each affected by a U.S. Division of State security alert and corresponding adverse media protection within the first quarter of 2024.

Most Islands Experiencing Vital RevPAR Development in 2024 and in Final Six Years

% RevPAR Change—TTM Sep 2023 vs. TTM Sep 2024

Supply: STR, HVS Analysis

Six-12 months RevPAR Compounded Annual Development Price

Supply: STR, HVS Analysis

The Significance of Era Z

One of the crucial distinguished matters at CHICOS 2024 was the rising affect of Era Z on the journey and hospitality trade. In line with analysis from Hopper, Gen Z now includes 21% of the American inhabitants. As a quickly rising market phase, Gen Z vacationers are reshaping the trade dynamics with distinctive preferences and values. Key Gen Z traits embrace delaying marriage and youngsters, prioritizing affordability, being digital natives who rely closely on social media, favoring sustainability practices, and sustaining a brand-neutral stance. Though members of Gen Z might not have the best earnings ranges, these people are likely to dedicate a big proportion of their spending to journey, successfully opening up alternatives for brand spanking new, non-traditional lodging sorts.

What distinguishes Gen Z vacationers essentially the most is their deal with distinctive, memorable, and culturally enriching experiences, and these preferences supply an thrilling alternative for the Caribbean to draw Gen Z guests. With its pure magnificence, wealthy tradition, and various obtainable actions, the area is nicely suited to satisfy these vacationers’ demand for significant, genuine experiences. Space lodge and resort operators should due to this fact discover methods to deal with the distinctive choices of the Caribbean, comparable to native delicacies, snorkeling adventures, and wellness actions. By combining these experiences with sustainability initiatives and extra social media engagement, the Caribbean can place itself as a prime vacation spot for the more and more vital Gen Z market phase.

The Continued Surge in All-Inclusive Journey

The Caribbean all-inclusive phase continues to thrive, with the continued improvement of latest properties, predominantly on islands with robust airlift and excessive visitor-arrival numbers from the U.S. In line with Accommodations.com, on-line searches for all-inclusive lodges have elevated by 60%. This pattern is pushed by the will for minimal stress and simplified bookings, together with luxurious experiences. Vacationers are prioritizing all-inclusive packages that characteristic native delicacies, emphasizing the significance of integrating genuine meals experiences. The Caribbean stands out as a really perfect selection for all-inclusive journey, notably for pal teams and multigenerational households searching for a seamless trip with simplified budgeting. To stay profitable, all-inclusive lodges should deal with standing out with wellness facilities, a robust model identification, and personalised choices. As well as, with the rise of Era Z, these resorts must embrace the most recent shopper traits. Trendy vacationers are wanting past comfort, searching for boutique-style stays that emphasize sustainability, wellness, and cultural immersion. Profitable properties are encouraging vacationers to discover the encompassing neighborhood, including significant engagement to their experiences.

Extra Favorable Financing Situations

One other recurring matter throughout the convention was the U.S. Federal Reserve’s choice to decrease rates of interest by 50 foundation factors this 12 months (the primary such easing in 4 years), which has vital implications for the Caribbean hospitality trade. Decrease borrowing prices create a extra favorable surroundings for improvement by broadening choices for capital stack buildings and lowering the monetary boundaries for brand spanking new tasks. This shift is especially impactful for the Caribbean as a result of the area has demonstrated resilience and sustained reputation amongst traders and vacationers alike. With elevated entry to reasonably priced capital, builders are higher positioned to pursue modern tasks. Moreover, the discount of borrowing prices can entice new traders and builders who might have beforehand been hesitant to enter the market, encouraging higher competitors within the area.

Driving the Wave

At this 12 months’s CHICOS occasion, optimism was palpable because the Caribbean area continues to “journey the wave” of its rising year-round enchantment, fueled partially by shifts in journey preferences. Report-breaking RevPAR development is supported by growing ADR, at the same time as challenges persist, comparable to larger prices for capital, building, and labor. The area’s resilience is additional bolstered by vital will increase in airlift, with new direct routes from U.S. cities, and initiatives by native governments to develop sights. These efforts purpose to draw worldwide vacationers and align with lodge manufacturers that resonate with these friends.

The rising affect of Era Z can also be reshaping trade dynamics, whereas a sturdy improvement pipeline is supported by rising customer arrivals and main model investments. These tasks span European-plan, all-inclusive, and luxury-branded residential choices. Though considerations stay in regards to the area’s means to maintain the robust ADR development recorded for the reason that pandemic, the outlook is constructive. With thrilling new lodges set to open within the coming years and worldwide and intra-island connectivity enhancing, the Caribbean is nicely positioned to keep up its momentum and showcase its resilience.

Click on right here to view the complete CHICOS 2024 presentation.
 

About CHICOS

The Caribbean Resort Funding Convention & Operations Summit (CHICOS) is the premier hospitality convention within the area. Having simply accomplished its thirteenth version in Barbados in 2024, CHICOS brings collectively tons of of regional and worldwide traders and operators, in addition to the area’s main decision-makers. Additionally taking part as attendees or audio system are authorities representatives, opinion leaders, builders, bankers and different lenders, tourism officers, funding fund representatives, lodge model executives, tourism builders searching for traders, franchise and operations firm delegates, private and non-private establishment members, consultants, advisors, architects, and designers. Convention attendees community and focus on the area’s markets and potentialities, whereas analyzing an important traits that may have an effect on their funding choices.

The 14th version of CHICOS will happen November 9–11, 2025, on the Curaçao Marriott Seaside Resort in Curaçao.

Concerning the Visitor Authors

Meropi Vrantzoglu is a graduate pupil at Boston College (BU), pursuing a grasp’s diploma in hospitality actual property. Her international perspective is formed by her worldwide background, as she is half Greek and half German, grew up in Dubai, and earned a bachelor’s diploma in worldwide enterprise. Consequently, Meropi brings a singular understanding of various cultures and markets to her work. At BU, she is gaining hands-on expertise by feasibility and improvement tasks primarily based on real-world hospitality challenges. Meropi is captivated with contributing to the way forward for the hospitality trade and creating particular locations the place folks can join and make lasting recollections.

Sara Saad is a second-year pupil at Boston College, pursuing a significant in hospitality with a focus in actual property and a minor in enterprise administration. Her educational journey is complemented by hands-on expertise with internships at famend properties, together with the Steigenberger ALDAU Resort in Egypt, Hyatt Regency Cairo West, and Hotelplan Suisse. These experiences have supplied her with invaluable insights into the hospitality trade’s various parts, from luxurious lodge operations to journey planning and customer support. She is captivated with constructing a profession within the hospitality and actual property sectors and goals to develop her capabilities with sensible experiences.

Kayla Lamar is a graduate pupil at Florida Worldwide College, incomes her grasp’s diploma in hospitality administration with a specialization in lodge actual property improvement from the FIU Chaplin Faculty of Hospitality & Tourism Administration. Kayla has labored professionally inside the subject of schooling for roughly ten years, with expertise instructing overseas and varied grade ranges domestically. She has volunteered with quite a few organizations, together with the Miami Guide Honest. Kayla lately shifted her consideration to the lodge trade and intends to deal with lodge improvement.

About Kristina M. D’Amico 

Kristina is Managing Director and Chief of the agency’s Caribbean Area consulting and valuation observe. Kristina’s vital worldwide consulting, advisory, and appraisal expertise contains property within the Caribbean Basin throughout 23 Caribbean islands, in addition to the Riviera Maya area of Mexico and lots of international locations in Latin America. Given her analytical expertise, her creative-thinking means, and her aptitude for fixing issues that come up in advanced tasks, purchasers notably worth Kristina’s insights and suggestions concerning lodge room counts, product positioning, facilities, and branding for a lot of sorts of proposed properties, together with lodges, all-inclusive resorts, and mixed-use resorts with complementary actual property. Contact Kristina at (305) 338-0354 or kdamico@hvs.com.