While many Caribbean and Latin American hotels and resorts are owned by large hotel companies, at Luxury Hotel Advisors, we think some of the most interesting are owned by an individual or a family. Travelers know that when a Caribbean resort is independently owned, it will be a little different from a brand and will in many cases reflect something about the owner. All of which makes for a more personal experience.
Let’s Talk About Rewards
- There is high demand as the Caribbean is a popular vacation destination and many people are willing to pay premium prices for a luxury resort. Many are repeat guests which provide a steady stream of customers.
- The Caribbean appeals to a wide market including the United States, Europe and South America.
- For beach lovers, the Caribbean is the ultimate destination with pristine, white sand beaches galore.
- The climate is perfect almost all year with warm aqua blue water for snorkeling, sailing, paddle boarding and SCUBA.
- If you vacation frequently on the island, ownership of a resort will make your visits feel more like coming home.
- Often local government will provide investment and tax incentives for development and acquisitions. Employment of residents is a strong motivator for government subsidies.
- Local labor is available and provides an appealing experience for visitors. Many guests return to see familiar faces at the resort.
And the Possible Pitfalls
We think the rewards are pretty compelling but it is good to know what might be different about owning a Caribbean resort.
- There can be some high costs associated with operating a hotel in the Caribbean such as utilities and supplies which mean maintaining larger pars and having adequate storage space.
- The Caribbean is a popular vacation destination but demand for hotels is highly seasonal. Some resorts close in September and October which is considered hurricane season.
- Adequate insurance is a must in the Caribbean which is prone to natural disasters such as hurricanes, which can cause significant damage to your hotel and disrupt business.
- There is strong competition in the Caribbean and competition can be fierce. You will have to work hard to differentiate your hotel and attract customers.
To Buy or Not to Buy
Overall, owning a hotel in the Caribbean can be a rewarding experience, but it’s important to be aware of the challenges and plan accordingly. We don’t suggest going it alone! Be sure to develop a team that will support you throughout the process and have your goals in mind.
For more information on investing in Caribbean resort real estate, visit www.luxuryhoteladvisors.com.