ALIS CALA poll shows investor sentiment still positive

CORAL GABLES, Florida — Temperatures are often balmy in the Caribbean and Latin America, but the investment climate can blow hot and cold, especially in today's topsy turvy macroeconomic environment. So, with the CALA investment community gathered in Coral Gables, Florida, the ALIS CALA team used a real time investor sentiment survey to find out how everyone feels about opportunities in the region. Overall, they said, “scaling back investment but remain optimistic while adjusting outlook.”

The survey also identified luxury as the hotel segment with the best investment opportunities in CALA. Eighty-one percent of respondents also said “money is available but it’s expensive” describes the current lending environment in the region.

The ALIS CALA/Caribbean Hotel & Tourism Investment Sentiment (CHTA) Poll asked conference attendees of the ALIS CALA by Northstar conference several questions about the current hotel investment environment. The results of the survey are below:

1. What region do you represent?

• Caribbean — 45%
• Both — 35%
• Latin America — 19%

2. How would you best describe current global hotel investor confidence?

• Scaling back investment activity but remain optimistic while adjusting outlook — 47%
• There has been no major shift - full speed ahead — 30%
• Delaying investment activity until there’s more clarity — 23%

3. How would you rate the current climate for tourism-related investment in CALA?

• Good — 80%
• Robust — 11%
• Mediocre — 8%

4. What will costs associated with construction and/or renovation look like in CALA for the next 12 months?

• +10% or more increase — 60%
• +0.1% to +9.9% increase — 35%
• Flat — 2%
• -0.1 to -9.9% decrease — 1%
• -10% or more decrease — 1%

5. What hotel segment presents the best opportunities for investment in CALA, given the current economic climate?

• Luxury — 44%
• Upper Upscale — 25%
• Upscale — 15%
• Midscale — 14%
• Economy — 2%

6. How would you best describe the current hotel-lending environment in CALA?

• Money is available, but it’s expensive — 81%
• Money is available as needed — 11%
• There’s little money available — 7%
• The money tap is turned off — 1%