PKF Consulting USA (PKFC) announced today that the average Caribbean hotel showed a 18.6 percent increase in net operating income (NOI) during 2013, according to its 2014 edition of its Caribbean Trends in the Hotel Industry report. This is the third year in a row that Caribbean hotels have experienced a double-digit increase in NOI and the highest annual growth in profits achieved since 2008.
The Caribbean hotel industry is made up of a large number of resort properties, which creates the opportunity to earn profits from a variety of services and amenities. At 56.8 percent, rooms revenue remains the largest source of revenue for the properties in the Caribbean Trends sample, but significant contributions come from food and beverage sales (28.8 percent), as well retail and recreation outlets (12.7 percent).
With profits growing, the region is attracting the attention of developers from all around the world. As reported in STR, Inc.’s June 2014 Construction Pipeline Report, there are 27,690 rooms either under construction or planned for development in the region.
The biggest new development to enter the Caribbean region in 2014 will be the 2,900-room Baha Mar, in Nassau, Bahamas. Other new developments coming on line from 2014 through 2017 include the Westin Cozumel, RIU Palace Antillas (Aruba), Real InterContinental Santa Domingo, Park Hyatt (St. Kitts/Nevis), Kimpton (Grand Cayman), Belle Mont Farm (St. Kitts/Nevis), and Third Turtle Resort and Marina (Turks and Caicos).
