2017 was the costliest hurricane season on record (estimated at around USD282bn, with some six major hurricanes and four retired names) and flight capacity around the region fell materially. As a result, hotel performance trends have varied enormously in the last 12 months, from a RevPAR growth high of +69.2% in San Jose to a low of -26.8% in Rio de Janeiro (where the city is still recovering from its Olympic hangover).

Natural disasters in the region have not only impacted performance, but also the cost of development, whereby contractors and suppliers are busy rebuilding many destinations and this is having an above inflationary effect on cost and delaying completions.

There have been a good number of transactions in the period, including a number of portfolio deals. Much of the investment has come from purchasers in Europe and the USA, perhaps a sign that international investors are again seeing the region in a more positive light. The pipeline also appears healthy, with a number of big schemes recently announced and underway (especially in Mexico and the Dominican Republic).

Contractors and suppliers are busy rebuilding many destinations and this is having an above inflationary effect on cost and delaying completions.

About WhiteBridge Hospitality

Whitebridge Hospitality is a specialist advisor to investors, developers and operators in the hospitality industry around the globe. We provide investment, operational and planning advice, and guidance in respect of the entire hospitality spectrum, including: hotels, mixed-use developments, conference and exhibition centres, spas, leisure facilities, casinos, visitor attractions and sporting venues. Our uniquely qualified team can provide services throughout an asset's life cycle, from site selection and acquisition, through master planning and feasibility studies, to operator selection, operational and asset strategy advice, to sale and agency services.

Philip Camble
Director
+44 20 7195 1482
Whitebridge Hospitality