Economic Cycles Affecting the Difference Between Top Caribbean Lodging Facilities

This article discusses the differences between two of the highest-yielding segments of the lodging market in the Caribbean. Smith Travel Research (STR) classifies branded hotels into one of the following tiers: Luxury, Upper Upscale, Upscale, Midscale, or Economy, from highest to lowest quality. This analysis has grouped Upscale and Upper Upscale properties together (a sample of 11,778 rooms in 37 hotels, yielding an average size of 318 rooms per hotel, as of the end of 2009) and goes forth to compare their performance over the last eleven years against the performance of Luxury properties (a sample of 6,113 rooms in 25 hotels, yielding an average size of 245 rooms per hotel as of the end of 2009).

Defining facets of the properties, occupancy, average daily rate (ADR), and revenue per available room (RevPAR), are analyzed. For the purpose of this analysis, only chain-affiliated properties were taken into consideration in order to ensure the most consistency in classification.

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HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.