While still challenging, the operating landscape for regional hotels appears to have improved since we released our last survey in 2011.
KPMG’s Caribbean Travel, Leisure and Tourism group is pleased to present the results of KPMG’s 2013 Caribbean Hotel Benchmarking Survey, which has been designed to provide owners, operators, lenders and investors with a better understanding of the profile and performance of hotels in the Caribbean.
While still challenging, the operating landscape for regional hotels appears to have improved since we released our last survey in 2011. For example, the number of visitors to several Caribbean destinations has stabilized and even grown in some cases and hotels surveyed are experiencing improvements in certain key performance indicators such as ADR and RevPAR.
Although overall occupancy fell slightly for survey respondents, the aforementioned improved rates coupled with successful implementation of cost containment measures resulted in 2012 profitability indicators showing signs of improvement when compared to 2011.
Bolstered by the general expectation that meaningful market growth will arrive by 2015, more than two-thirds of survey respondents have expansion plans for the next 18 months. Our Survey results indicate airlift, the impact of new taxes such as VAT and the ability to secure financing are currently issues of critical interest to hoteliers.
We take this opportunity to say a special thank you to our Survey participants (who will also receive a more detailed analysis of the financial results separately). We welcome participation from additional properties for future surveys.