The Caribbean hotel industry is experiencing strong momentum in early 2025, with key performance indicators reflecting steady growth. Hotel occupancy, revenues, and average daily rates (ADR) have all increased, continuing an upward trend that began in December 2024, when demand surged during the holiday season.
Strong Performance Across the Region
According to hotel analytics firm STR, regional hotel occupancy rose by 2.7% in February, reaching 77.9%. So far, the overall occupancy rate for 2025 stands at 75.3%, reflecting a 2.5% increase over the first two months of 2024.
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Fully Operational Boutique Hotel, Palm Garden, Barbados, Caribbean. Exclusive*
Hotel revenues have also climbed, with revenue per room increasing by 4.4% to $313.73 in February. Meanwhile, ADR rose by 1.7%, reaching $407.71. These numbers indicate sustained demand across 2,141 hotel properties and more than 285,000 rooms throughout the Caribbean.
Regional Trends Reflect Broad Growth
Several Caribbean destinations have reported impressive tourism growth, reinforcing the region’s strong performance.
- Barbados has seen particularly high demand, with January and February hotel occupancy approaching 100%. As of mid-February 2025, the average occupancy rate stood at 81%, with many properties reaching the high 90s. The island’s growing appeal was further highlighted by being named one of National Geographic’s “Best of the World 2025” destinations.
- Curaçao recorded a 15.6% increase in stopover arrivals in February 2025 compared to 2024.
- The Dominican Republic welcomed 755,832 tourists in February 2024, marking a 14.3% rise from the previous year.
- Belize saw a 21.8% increase in stopover visitors during the same period.
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Ocean 15 Hotel: 23 room, St Lawrence Gap, Christ Church
A Promising Year Ahead
With sustained growth in hotel occupancy, revenue, and visitor arrivals, 2025 is shaping up to be a record-breaking year for Caribbean tourism. The demand that surged in December 2024 has not waned, and hoteliers across the region report high occupancy and strong forward bookings.
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