Caribbean Hotel Update: Crisis and Recovery

Undoubtedly, the Caribbean is a popular destination in the international tourist trail. However, the region has long way to go in recovery from the global pandemic.

Now the focus is on how much the various international lockdowns will impact hotel performance into the Caribbean’s high season (mid-December through mid-April).

A deep dive into the Caribbean

Although countries in the Caribbean have put into place their own travel restrictions, the market (as a whole) saw a slight pickup in occupancy as the high season approaches.

A 24.9% occupancy level for October was the region’s highest since March. This trend is expected to continue through November’s data. For context, the region saw its lowest occupancy level in April (7.2%).

Key Caribbean Markets

In October, the U.S. Virgin Islands posted the region’s highest occupancy level (44.9%), followed closely by Curaçao (44.6%) and Saint Lucia (40.8%). For comparison, the Bahamas and the Cayman Islands posted the lowest occupancy levels in the October, 10.7% and 13.1%, respectively.

Puerto Rico: Regional markets are leading the recovery

As we have seen in other markets around the globe, regional markets in Puerto Rico are leading the recovery while San Juan has lagged.

On 11 June, after 88 days, Puerto Rico lifted its national COVID-19 lockdown while international tourism remained restricted. Since then, demand has grown consistently thanks to strong domestic sources. In October, San Juan posted a 36.1% occupancy level, its highest monthly occupancy level since March. For comparison, the STR-defined Puerto Rico Regional market posted a 34.3% occupancy in October, its highest level since February.

Puerto Rico Regional also recorded its highest ADR increases this year during September and October, +15.8% and +4.8%, respectively. Both months saw the highest ADR for any September (US$192.13) and October (US$198.76) in STR Puerto Rico’s database.

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