Stephen Joyce, president and CEO of Choice Hotels International, is bullish on Caribbean hotel investment and growth as well as the future of the region’s tourism sector.
At the same time, he is realistic.
“After a very deep dip in performance, the Caribbean hotel industry is starting to see a healthy return,” Joyce said. “Airlift issues are hindering recovery, and the availability of financing is continuing to slow new development.”
He said many countries, large and small, “are experiencing serious reductions in airlift and in high ticket prices.”
Financing is difficult for independent hotels, as well.
“Lenders are looking more favorably at brand-recognized companies, such as Choice Hotels, that have a proven track record of performance,” he said.
Where Choice does have a Caribbean presence, year-over-year increases in revenue per available room have ranged from 2.4% in Puerto Rico to 34% in the Turks and Caicos. “The performance of our hotels generally has mirrored the islands’ trends,” Joyce said.
He reported strong advance bookings for the summer period, particularly in the Bahamas and the Cayman Islands.
Choice has 10 properties in the Caribbean representing five of its 11 brands, and it aims to double its presence in the Caribbean over the next three years with a mix of newbuilds, but mostly conversion projects, Joyce said.
“While we are focused on growing across the entire region, we are currently seeing the most development interest in markets with a higher percentage of U.S. travelers,” he said, citing the U.S. Virgin Islands, Puerto Rico and Jamaica in particular.
Its current Caribbean portfolio includes two Comfort Inns in Puerto Rico; Comfort Suites properties in the Bahamas, Grand Cayman and Turks and Caicos; two Quality Inns in Puerto Rico and one in the Dominican Republic; a Clarion property in Curacao; and an Ascend Collection hotel in San Juan.
Coming up are four properties under two brands in Haiti, Dominica and Anguilla.
The conversion of the former Cap Lamandou Hotel to a Comfort Inn in Jacmel, Haiti, was first announced at Caribbean Marketplace in 2010, just days before the Jan. 12 earthquake.
Choice reiterated its commitment to the project at the next two Marketplace events in 2011 and again in January of this year, although the timeline remained unclear.
“Financing [on that project] is finalizing, so we would like to see it opened late this year,” Joyce said.
The second Haiti project also is in Jacmel on the island’s southern coast, about 45 miles southwest of the capital of Port-au-Prince.
The newbuild is the 100-room Belle Rive, which will be an Ascend Collection brand. “This one is taking a bit longer, due to new construction financing,” Joyce said.
Other Ascend Collection projects include the Atlantique View Resort & Spa in northeastern Dominica and the 80-suite Royale Caribbean Resort & Spa under construction on Anguilla’s south coast, both scheduled to open late this year or early 2013, according to Joyce.
“The Ascend Collection membership program has gained great traction because it is a natural fit for the Caribbean,” he said. “Owners of well-operated hotels in the upper midscale category need the power of the Choice distribution system to maximize revenues and save on operational expenses.”
Follow Gay Nagle Myers on Twitter @gnmtravelweekly.