Caribbean Hotel Performance Declined Slightly in 2016

Stephen Hennis, STR's vice president of consulting and analytics

The Caribbean hotel industry saw negative year-over-year results in three key performance metrics in 2016, according to data from STR. Compared with 2015, Caribbean hotel occupancy dropped 2.3 percent, to 66.7 percent, the lowest it's been since 2013; average daily rate was down 0.3 percent, to $201.50; and revenue per available room fell 2.6 percent, to $134.48. 

Stephen Hennis, STR's vice president of consulting and analytics, said, "While many factors affected performance, the Zika outbreak and an active hurricane season were the primary issues behind declining demand. Meanwhile, a weakened exchange rate for European and Canadian currency resulted in a lack of ADR growth."

February had the highest occupancy rates last year (77 percent), while December saw the highest average daily room rates ($261.31) and March had the highest RevPAR ($196.56). October had the lowest occupancy rates (54.6 percent), and September had the lowest ADR ($142.65) and RevPAR ($78.29).

Other data shows the number of hotel rooms in the region grew by more than 2,700 in 2016, marking the third straight year of growth of more than 1 percent. Hennis said the Caribbean has 48 hotels -- representing 11,217 guest rooms -- in the pipeline.