The Caribbean hotel sector closed the first half of 2026 with a record occupancy rate, higher average daily rates, double-digit revenue per available room (RevPAR) growth, and more than $14 billion in room revenue, according to data from hotel analytics firm STR reported by Caribbean Journal on 20 July 2026.
The headline numbers confirm what has been building across the region throughout the year: Caribbean tourism is not merely recovering from the pandemic — it is performing at levels never previously recorded.
The Record Numbers
STR data tracking the Caribbean hotel market showed occupancy climbing for the fifth consecutive month in May 2026 to 66.7 per cent — the highest May occupancy ever recorded in the region. Year-to-date occupancy through June reached 74.1 per cent, up 4.6 per cent over the same period in 2025. Room rates rose 6.2 per cent year-on-year while revenues increased 11 per cent. The cumulative half-year total of more than $14 billion in room revenue represents a milestone for the regional tourism industry.
Anguilla led the region in RevPAR at US$1,376.54 per available room — a 36.3 per cent increase on the prior year — driven by an average daily rate of US$2,051.92, the highest in the Caribbean. The Bahamas recorded the highest occupancy, while Puerto Rico and the Dominican Republic posted balanced growth through strong occupancy and steady rate increases.
But There Are Nuances
Caribbean Journal’s analysis notes that the record headline numbers do not tell the whole story. Despite historically strong occupancy and revenue performance, the region retains only 15 to 20 cents of every tourism dollar spent, according to Caribbean development researchers. The remainder leaks through imported food and beverages, overseas-owned hotel brands, foreign labour, and repatriated profits. Jamaica’s own Tourism Supply Logistics Centre initiative — announced in June 2026 — is a direct policy response to this leakage challenge.
Jamaica itself was the only major Caribbean destination to record a decline in RevPAR in the year to May 2026, as softer occupancy outweighed modest rate growth — a sign that the island has room to improve its tourism performance relative to regional peers, even as overall visitor volumes remain strong.
Property Market Implications
For property investors across the Caribbean and in Jamaica specifically, hotel sector performance is one of the most reliable leading indicators of real estate value trends in tourism-dependent markets. When hotels are running at record occupancy and generating record revenues, the economic case for resort-adjacent residential development, branded residence projects, villa rentals, and short-term accommodation investment strengthens considerably.
The Caribbean hotel development pipeline reflects this confidence: room supply across the region continued to expand slightly during the first half of 2026, with new resort development activity particularly visible in the Bahamas, Jamaica, Aruba, Curaçao, Puerto Rico, and the Dominican Republic. The development pipeline shows a 30.7 per cent year-on-year increase in rooms under construction across key markets.
For Jamaica, the combination of the Marriott conversion at Montego Bay and sustained regional hotel outperformance creates a positive investment backdrop for tourism-linked property — even as the island navigates broader economic headwinds from Hurricane Melissa’s aftermath and elevated inflation.
Sources: Caribbean Journal, 20 July 2026; STR Caribbean Hotel Performance Data, H1 2026
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