Riding the Wave: Key Takeaways from Caribbean Resort Investment Convention And Operations Summit 2024

The 2024 model of the Caribbean Resort Investment Convention & Operations Summit (CHICOS) introduced over 300 attendees to the Wyndham Immense Barbados Sam Lord’s Castle All Inclusive Resort for several days of networking and substitute insights from key stakeholders in the placement. While last twelve months’s CHICOS conference centered on the exponential remark in customer arrivals and sensible rates in the placement, this twelve months’s CHICOS theme, “Riding the Wave,” highlighted the document-breaking RevPAR and recent pattern appetite in the placement. A number of key takeaways from this twelve months’s conference are equipped below.

File-Breaking RevPAR Enhance

The Caribbean location benefited from document arrival numbers in 2023, and arrivals via the September 2024 twelve months-to-date length increased by 8.0% over the the same length in 2023. This remark in arrivals has in turn supported persevered remark of RevPAR. Over the last six trailing-twelve-month (TTM) sessions via September, the Caribbean has maintained a compounded annual RevPAR remark price of 5.9%, in accordance with info from STR. Essentially the most latest TTM length reveals persevered will enhance in all performance metrics, including document occupancy, ADR, and RevPAR stages, with RevPAR 6.0% bigger than the prior TTM length.

RevPAR for the Caribbean Has Reached Unique Peak in 2024

Source: STR
 

When comparing the compounded annual RevPAR remark for every and each island in the Caribbean over the last six TTM sessions via September, the Bahamas and Dominican Republic lead in RevPAR remark. Both islands wait on from their recognition with travelers from the US (the most important provide market to the Caribbean) and their areas approach the U.S. Every island has fully rebounded to pre-COVID stages excluding for Trinidad and Tobago, which has nearly recovered. In basically the most latest TTM length, nearly each and each island has carried out higher than the the same length in 2023. The exceptions to this trend are the U.S. Virgin Islands (USVI), which has experienced some downward strain on ADR no subject double-digit visitation will enhance, and extra vastly, the Bahamas and Jamaica, which had been both plagued by a U.S. Department of Affirm security alert and corresponding destructive media protection in the most important quarter of 2024.

Most Islands Experiencing Necessary RevPAR Enhance in 2024 and in Final Six Years

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

Source: STR, HVS Analysis

Six-Yr RevPAR Compounded Annual Enhance Charge

Source: STR, HVS Analysis

The Importance of Generation Z

One in all basically the most prominent issues at CHICOS 2024 changed into as soon as the rising impact of Generation Z on the walk and hospitality substitute. According to compare from Hopper, Gen Z now comprises 21% of the American inhabitants. As a rapid rising market segment, Gen Z travelers are reshaping the bogus dynamics with uncommon preferences and values. Key Gen Z trends embody delaying marriage and childhood, prioritizing affordability, being digital natives who depend heavily on social media, favoring sustainability practices, and asserting a bunch apart-neutral stance. Despite the indisputable truth that contributors of Gen Z may per chance well per chance also impartial not maintain the very supreme earnings stages, these folks are inclined to dedicate a most important share of their spending to walk, successfully opening up alternatives for fresh, non-veteran lodging forms.

What distinguishes Gen Z travelers basically the most is their focal point on uncommon, memorable, and culturally enriching experiences, and these preferences offer a thrilling opportunity for the Caribbean to intention Gen Z guests. With its natural beauty, rich culture, and various on hand activities, the placement is appropriate to meet these travelers’ ask of for necessary, legit experiences. Space resort and resort operators must therefore gain ways to focal point on the uncommon choices of the Caribbean, equivalent to local cuisine, snorkeling adventures, and wellness activities. By combining these experiences with sustainability initiatives and extra social media engagement, the Caribbean can put itself as a top vacation popularity for the an increasing selection of well-known Gen Z market segment.

The Continued Surge in All-Inclusive High-tail

The Caribbean all-inclusive segment continues to thrive, with the persevered pattern of latest properties, predominantly on islands with sturdy airlift and excessive customer-arrival numbers from the U.S. According to Hotels.com, on-line searches for all-inclusive hotels maintain increased by 60%. This trend is pushed by the need for minimal stress and simplified bookings, alongside with luxurious experiences. Vacationers are prioritizing all-inclusive packages that characteristic local cuisine, emphasizing the importance of integrating legit food experiences. The Caribbean stands out as an glorious replace for all-inclusive walk, notably for buddy teams and multigenerational households seeking a seamless vacation with simplified budgeting. To dwell successful, all-inclusive hotels must focal point on standing out with wellness facilities, a doughty set apart identification, and custom-made choices. To boot, with the upward push of Generation Z, these resorts need to embrace the latest person trends. Original travelers are taking a glimpse beyond comfort, seeking boutique-style stays that emphasize sustainability, wellness, and cultural immersion. Profitable properties are encouraging travelers to explore the surrounding neighborhood, adding necessary engagement to their experiences.

Extra Favorable Financing Instances

One other habitual topic all the way via the conference changed into as soon as the U.S. Federal Reserve’s resolution to lower rates of interest by 50 foundation elements this twelve months (the most important such easing in four years), which has necessary implications for the Caribbean hospitality substitute. Decrease borrowing charges salvage a extra favorable environment for pattern by broadening solutions for capital stack structures and reducing the financial obstacles for fresh initiatives. This shift is notably impactful for the Caribbean for the reason that location has demonstrated resilience and sustained recognition among traders and travelers alike. With increased entry to sensible capital, builders are higher positioned to pursue modern initiatives. Moreover, the bargain of borrowing charges can entice recent traders and builders who may per chance well per chance also impartial maintain previously been hesitant to enter the market, encouraging bigger opponents in the placement.

Riding the Wave

At this twelve months’s CHICOS event, optimism changed into as soon as palpable as the Caribbean location continues to “shuffle the wave” of its rising twelve months-round allure, fueled in section by shifts in walk preferences. File-breaking RevPAR remark is supported by increasing ADR, at the same time as challenges persist, equivalent to bigger charges for capital, constructing, and labor. The location’s resilience is extra bolstered by necessary will enhance in airlift, with recent reveal routes from U.S. cities, and initiatives by local governments to expand attractions. These efforts goal to intention global travelers and align with resort manufacturers that resonate with these company.

The rising impact of Generation Z is also reshaping substitute dynamics, whereas a sturdy pattern pipeline is supported by rising customer arrivals and most important set apart investments. These initiatives span European-thought, all-inclusive, and luxury-branded residential choices. Despite the indisputable truth that concerns remain concerning the placement’s ability to support the sturdy ADR remark recorded for the reason that pandemic, the outlook is sure. With gripping recent hotels field to begin in the arriving years and global and intra-island connectivity bettering, the Caribbean is neatly positioned to maintain its momentum and showcase its resilience.

Click here to peek the fleshy CHICOS 2024 presentation.
 

About CHICOS

The Caribbean Resort Investment Convention & Operations Summit (CHICOS) is the premier hospitality conference in the placement. Having pretty completed its 13th model in Barbados in 2024, CHICOS brings together tons of of regional and global traders and operators, to boot to the placement’s main resolution-makers. Also taking portion as attendees or speakers are authorities representatives, notion leaders, builders, bankers and other lenders, tourism officials, funding fund representatives, resort set apart executives, tourism builders seeking traders, franchise and operations company delegates, public and non-public institution contributors, consultants, advisors, architects, and designers. Convention attendees community and focus on the placement’s markets and prospects, whereas analyzing the supreme trends that can per chance have an effect on their funding selections.

The 14th model of CHICOS will steal express November 9–11, 2025, on the Curaçao Marriott Seashore Resort in Curaçao.

About the Customer Authors

Meropi Vrantzoglu is a graduate pupil at Boston College (BU), pursuing a master’s stage in hospitality true estate. Her global standpoint is formed by her global background, as she is half of Greek and half of German, grew up in Dubai, and earned a bachelor’s stage in global industry. Consequently, Meropi brings a totally different figuring out of various cultures and markets to her work. At BU, she is gaining palms-on experience via feasibility and pattern initiatives in step with true-world hospitality challenges. Meropi is smitten by contributing to the manner ahead for the hospitality substitute and rising particular areas where folks can join and invent lasting memories.

Sara Saad is a second-twelve months pupil at Boston College, pursuing a most important in hospitality with a concentration in true estate and a minor in industry administration. Her tutorial walk is complemented by palms-on experience with internships at worthy properties, including the Steigenberger ALDAU Resort in Egypt, Hyatt Regency Cairo West, and Hotelplan Suisse. These experiences maintain equipped her with precious insights into the hospitality substitute’s various parts, from luxury resort operations to walk planning and buyer provider. She is smitten by constructing a occupation in the hospitality and true estate sectors and targets to expand her capabilities with vivid experiences.

Kayla Lamar is a graduate pupil at Florida International College, earning her master’s stage in hospitality management with a specialization in resort true estate pattern from the FIU Chaplin College of Hospitality & Tourism Administration. Kayla has worked professionally sooner or later of the sphere of training for roughly ten years, with experience instructing in a single other nation and totally different grade stages in the community. She has volunteered with rather quite a lot of organizations, including the Miami Book Lovely. Kayla not too lengthy in the past shifted her consideration to the resort substitute and intends to focal point on resort pattern.

About Kristina M. D’Amico 

Kristina is Managing Director and Leader of the firm’s Caribbean Residing consulting and valuation notice. Kristina’s necessary global consulting, advisory, and appraisal experience entails sources in the Caribbean Basin sooner or later of 23 Caribbean islands, to boot to the Riviera Maya location of Mexico and tons countries in Latin The US. Given her analytical expertise, her ingenious-thinking ability, and her aptitude for fixing complications that come up in advanced initiatives, customers notably payment Kristina’s insights and ideas relating to resort room counts, product positioning, facilities, and branding for many forms of proposed properties, including hotels, all-inclusive resorts, and mixed-exercise resorts with complementary true estate. Contact Kristina at (305) 338-0354 or kdamico@hvs.com.