Atlanta PKF Consulting announced that for the second year in a row, the average Caribbean hotel experienced a double-digit growth in net operating income (NOI). For 2012 the average increase was a reported 10.9% increase.
There are three main qualities that can be attributed to the Caribbean’s overall growing industry: a unique operating environment, the construction of new hotels, and airlift efficiency. The Caribbean’s way of operating a hotel relies heavily on guest’s purchase of amenities and services. These extra revenue streams significantly helps the increase in NOI. Secondly, the found growth is attracting more developers. As reported in Smith Travel Research’s June 2013 Construction Pipeline Report, “there are 17,932 rooms either under construction or planned for development in the region. In addition, several hotels are undergoing major renovations and improvements.” By far, the biggest new development to enter the Caribbean region will be the 2,200-room, mega-resort Baha Mar. Lastly, the issue of airlift. Airlift refers to how efficient, safe and accessible flights are to get to the destination. Local hoteliers always have stressed the importance of reliable and stable airlift to the region. “In order for new resorts in the area to thrive, the Caribbean is in need of increased local and long-distance, non-stop flights,” said senior vice president at PKFC Scott Smith.
All in all, it seems like the Caribbean is going to experience a fruitful and prosperous year. Senior vice president at PK concluded, “The challenges that Caribbean hoteliers will face in the future are multi-faceted. If handled poorly, the recovery could be extended. However, if handled properly, all participants in the region should enjoy continued healthy increases in performance.”