by Michael J. Shapiro | May 15, 2019

Hotel construction is robust in Mexico and the Caribbean, according to lodging-data provider STR's pipeline data for the region. As of April, there were 131 hotel projects in the construction phase, accounting for 29,187 rooms, as a wealth of projects that have been in development are now coming to fruition. The number of rooms being built represents a 30.7 percent jump compared to the rooms under construction a year ago. 

Of the four countries where more than 1,000 rooms are in the construction phase, Mexico leads the way by far, with 15,731 -- that's 3.9 percent of the country's total supply. The Dominican Republic follows, with 6,216 rooms or 8.9 percent of its existing supply. Jamaica is next with 2,144 rooms (8.4 percent of existing supply), and Cuba follows with 1,327 rooms (2.1 percent). 

Planners should note that a large portion of these rooms are in the top chain-scale segments. Upper upscale represents the largest portion, with 6,566 rooms, and luxury follows, with 6,215 rooms. Both represent dramatic year-over-year increases, with upper upscale jumping by a whopping 37 percent and luxury up by 33.9 percent.