Caribbean Hotel Occupancy Falls Slightly, Yet Revenue Holds Strong

In September 2025, the Caribbean hospitality sector experienced a slight fall in hotel occupancy, dropping to about 46.1%, representing a year-on-year decline of around 1.4%. Despite the occupancy dip, key revenue metrics remained stable, indicating the region’s ability to attract higher-value visitors even in slower months.

The average daily rate (ADR) climbed to approximately US$234.29, rising by about 1.4% compared with the previous year. Revenue per available room (RevPAR) showed minimal change, with only a slight drop to around US$108.01. This combination underscores the strength of pricing power in many Caribbean markets.

Tourism officials noted that the marginal occupancy decline is largely driven by seasonal dynamics—late summer and early autumn are traditionally softer periods for beach destinations, compounded this year by lingering hurricane-season concerns.

Nevertheless, the fact that revenues held steady signals optimism: hotels and resorts believe they are increasingly positioned as premium destinations, able to command stronger nightly rates rather than relying purely on volume.

Stakeholders emphasise the importance of continuing to diversify — promoting culture, wellness, eco-tourism, and off-peak stays — to buffer against seasonal dips and external shocks.

For the Caribbean, the performance sends a message: while growth may slow or fluctuate, strengthening yield and visitor value remains a crucial strategy for resilience.