CHRIS + HOLA 2022 Insights

One World, One Vision

Following The Caribbean Hotel & Resort Investment Summit and Hotel Opportunities Latin America, our team shares the key topics from the conferences. CHRIS & HOLA provided an extensive array of sessions and panels led by hotel and finance industry experts in their respective regions, providing valuable takeaways and actionable strategies for attendees.

Strong Performance & Outlook  

The United Nations World Tourism Organization reported the Caribbean is the best-performing region globally, with the outlook for the summer being strong, as expectations show performance slightly exceeding 2019 levels. Latin America is not far behind with cross border travel up by 14%. In both regions, leisure travel still leads as the strongest sector, especially with blended travel (business and leisure) increasing as the “work from anywhere” mentality continues.

The countries with the most interest from developers are listed below:

1. Mexico
2. Dominican Republic
3. Costa Rica
4. Puerto Rico
5. Jamaica

What to Watch  

Leaders in the hospitality industry shared their thought on the topics listed below –

• Renovations & Repositioning –
  Due to the availability of land, many developers and brands are turning to renovate, brand and reposition. One strategy that has seen success among the marketplace and a foundation for developing a compelling and sustainable positioning for designers is leveraging adaptive reuse.
  • 65% of conversions are adaptive reuse.
  • Gen-Z is interested in adventure travel and immersion fully into the culture of the place they are traveling.
  • Resiliency must be a top focus of developers and brands to protect their assets and mitigate risks associated with properties in natural disaster-prone areas and buildings not brought up to present code.

• ESG (Environmental, Social, and Governance) –
  Brought to the forefront due to the current climate and social challenges, investors are increasingly interested in seeking opportunities that benefit social goals beyond the corporate organization. These non-financial factors are a criteria used to ensure sustainable investing by identifying material risks and growth opportunities. Increasing interest is seen by companies incorporating ESG through the below strategies:
  • Integrating sustainable practices in building and operations.
  • Large hotel chains are working to reduce emissions across all scopes as part of their sustainability journey.
    • Accor is pursuing 46% carbon target reduction in alignment with the Paris agreement.
  • Local sourcing of food and experiences.
  • Brands are emphasizing the social aspect by diversifying teams, especially in leadership positions.
  • Long-term, countries are hoping to incentivize and create legislation for sustainable building.
    • Construction focused on sustainability – core for finances.
    • Storytelling – educate employees to share the company’s sustainability approach. In turn, clients learn about the company’s priorities and gain loyalty.
    • Integrating wellness boosts the demand of the hotel.

• Customizable Experiences –
  While the industry continues to overcome challenges in operational staffing, construction delays and limitations from supply shortages and transportation delays, it has become ever more pressing for hotels to focus on providing value and exceptional traveler experiences. Speakers and industry leaders further drove the need for hotelier to create an aspirational lifestyle for the guest that is different from home.
  • “A sense of place is necessary to integrate local communities,” says Federico Moreno-Nickerson from Apple Leisure Group.
    • Embed culture into the experience through staff & local elements throughout the hotel or resort.
  • Standards are visible in the operations and room sizes but not in the experience – it should depend on the location.
  • Lifestyle hotels – from hostels to ultra-luxury, are the fastest-growing segment.
  • Beyond world-famous beaches and waters, Caribbean and LATAM travelers expect experiences driven by diverse cultural, culinary and historic treasures.
    • The Panamanian government is focusing on training those entering the hospitality industry in adventure travel. Specializing in whale watching, turtle nestling and educational programs in the tourism industry.
  • Due to high land prices, developers are creating mixed offering destinations with boutique hotels, co-living housing, and multifamily products.

Pent up travel demand and range of destination and hotel choices proved that the Caribbean and Latin America are leading the summer outlook in terms of the return of leisure travel and overall leader in the global tourism recovery. Focusing on the key factors above may support the region in continuing to the lead the rebound.