What's Happening?
The 2025 Caribbean Hotel Investment Conference & Operations Summit (CHICOS) took place at the Marriott Beach Resort & Spa in Curaçao, attracting nearly 300 attendees. The conference focused on the theme
'Navigating the Current,' emphasizing the potential for continued growth in the Caribbean hotel industry despite challenges such as high insurance costs and a difficult financing environment. The event highlighted the strong demand for luxury mixed-use and all-inclusive hotel projects, with new supply expected to slow pricing power in the near term. The conference also featured discussions on the impact of all-inclusive resorts and short-term rentals on traditional hotel markets.
Why It's Important?
The Caribbean hotel industry is a significant contributor to the region's economy, attracting travelers from the United States, Europe, and Latin America. The conference underscored the importance of sustainable development and infrastructure improvements to maintain growth. The presence of investment funds and financing vehicles at the conference indicates strong interest in the region's hospitality sector. However, challenges such as transportation costs and sustainability issues need to be addressed to ensure long-term success. The conference's optimistic outlook for 2026 suggests continued investment and development in the Caribbean, particularly in the luxury segment.
What's Next?
The Caribbean hotel industry is expected to continue its growth trajectory, with new luxury and upper-upscale properties opening in 2025. Developers are likely to focus on projects with strong feasibility studies, quality sponsors, and strategic locations to mitigate risks. The expansion of airports in the region is anticipated to improve airlift capacity, facilitating stronger room-night capture. Stakeholders will need to address the dispersion of demand caused by all-inclusive resorts and short-term rentals to maintain the industry's momentum. The conference participants expressed optimism for the Caribbean's future, despite uncertainties related to U.S. tariffs and other regional challenges.
