Caribbean RevPAR Down 5.6 Percent through July

Analysis of Caribbean hotel performance by STR reveals a 5.6-percent RevPAR decline for 2008 through July. Hotel demand grew 0.4 percent during the period, however new supply growth and rate decreases led to decreased revenue for the region.

STR data shows that moving 12-month figures (June 2007 thru July 2008) remained flat. Revenue per room fell 0.1 percent on occupancy growth of 0.8 percent and a 0.8 percent decline in average daily rate. Further inspection reveals an imbalance in the period average. Strong performance in June thru December 2007 offsets weak 2008 numbers.

Year-to-date (through July) figures for the region show an increase in hotel room demand of 0.4 percent while supply grew 1.3 percent. Year-to-date occupancy fell 0.9 percent to 71.4 percent. Rates decreased 4.7 percent.

Average nightly rate for the region stands at $199.50. Revenue per available room fell by 5.6 percent to $142.36. RevPAR declines were precipitated by large rate decreases. STR data reveals double digit revenue declines in both April and June.

Data for the STR survey was collected from 162 hotels participating in the STAR program. These hotels represent 50,211 rooms across the Caribbean region.