Caribbean Hotel Room Rates Set to Keep Rising

Hotel room rates in the Caribbean reached an average per night of $228 last year, new research has found, with prices set to increase another 5% this year.

The 2015 average was an increase of around 4.7% and underlines increasing demand for the region, which is seen as a safe haven largely immune from the threat of terrorism.

The average daily rate has continued the upward trend that in 2014 saw prices increase to a point not seen since the economic crash in 2007-8 when average rates were around $200.

US-based research company STR, which is predicting an average price rise this year of around 5.1%, revealed the data. STR’s client services director Newton Kam said: “This year is going to continue on the same path, although we think demand will soften a little.”

He said the falling stock market and the troubles in the oil industry would affect confidence.

However, Kam said softening demand would be balanced by a lack of supply at some times of the year.

STR estimates there are almost 10,000 new hotel rooms under construction or being planned in 49 properties throughout the Caribbean, a figure still below that of 2009. STR estimates that the Caribbean has 230,000 rooms in total, of which 22% give it data.

Source: TTG Media