Cooling US demand weighs on CALA leaders’ minds

INTERNATIONAL REPORT — Cooling demand from the U.S. was a dominant thought among CALA leaders when asked to review the past year in the region as part of a CBRE roundtable discussion.

“In the first half of 2025, we observed that the lodging sector continued to evolve positively, perhaps showing greater stability compared to previous years,” said Francesc Colell, CFO of Ibiza, Spain-based Palladium Hotel Group. “However, what we noticed clearly was a cooling in demand from the U.S. toward Caribbean destinations.”

Bernabé López, director of development and asset management for San José, Costa Rica-based Caribe Hospitality, noticed those shifting dynamics as well.

“Midway through 2025, we’ve seen shifts in demand dynamics — government and leisure segments have softened, while corporate travel has remained steady,” López said. “This has led us to fine-tune our mix and pricing strategy to protect rate integrity and capture share in resilient segments.”

While the year began with challenges, the results are ending on a more optimistic note, according to Conor Lawler, CFO of Montego Bay, Jamaica-based Sandals Resorts International.

“The year began with some short-term challenges, likely driven by consumer confidence and market uncertainty,” Lawler said. “It has been encouraging, however, to see stabilization and recovery take hold so quickly. This resilience, combined with stronger demand, gives us confidence as we head into the fourth quarter and look ahead to the start of 2026.”

CBRE recently hosted a roundtable discussion with Caribbean and Latin American lodging experts from major hotel companies to discuss current challenges and opportunities in the region.

The panelists included:

• Bernabé López, director of development and asset management, Caribe Hospitality
• Mauricio Elizondo, chief development officer, Grupo Posadas
• Pablo Maturana, vice president of development, Architecture, Design and Construction for the Caribbean and Latin America, Hilton
• Tina Necrason, global head of Branded Residential, Hyatt
• Ana Tomicevic, global vice president, Brand & Marketing, Hyatt
• Francesc Colell, CFO, Palladium Hotel Group
• Conor Lawler, CFO, Sandals Resorts International

Hotel Investment Today’s parent company, Northstar Travel Group, will host its annual America Lodging Investment Summit for the Caribbean and Latin America (ALIS CALA) on April 28-30, 2026, at the Loews Coral Gables Hotel in Coral Gables, Florida. Click here for more information on the event.

Here are the panelists' thoughts on various CALA-related topics:

GEOGRAPHIC EXPANSION

Tomicevic: She said several new ultra-luxury projects are opening in markets that were not historically perceived as luxury markets. Travelers are increasingly seeking high-end, curated experiences in destinations beyond traditional luxury hubs like St. Barts. Quintana Roo is a prime example of an area once defined by spring break and party crowds that is now seeing ultra-luxury all-inclusive resorts being developed.

Maturana: Hilton is committed to placing the right hotel in the right destination at the right time, driven by our belief that today’s travelers are eager to explore new places and experiences… Hilton plans to continue expanding its luxury portfolio, including Waldorf Astoria, Conrad Hotels & Resorts, and LXR Hotels & Resorts, aiming to double its presence across these three brands nearly.

Lawler: The Caribbean’s geographic advantage and being the gateway to the U.S. ensure consistent demand. This, combined with the region’s beauty and cultural richness, ensures it will always be a long-term luxury destination.”

Elizondo: Many of these projects are financially driven due to a residential component. The residential component helps lower the project's capital cost.

INVESTMENT

While high-end and all-inclusive resorts may grab the headlines, some hotel companies are diversifying their portfolios and taking advantage of the region’s economic growth and boost in intra-regional travel.

López:  For 2026 and beyond, we plan to build on our select-service development DNA with targeted projects in Costa Rica, El Salvador, and potentially another in the Caribbean. Our immediate focus is advancing these opportunities, including our first coastal leisure hotel — an important step in diversifying our traditionally corporate-focused portfolio and extending our presence into new demand segments.

Elizondo: He said Posadas is focusing on Mexico, the Dominican Republic, and Costa Rica for development of properties across the board - economy, limited-service, mid-scale and full-service in urban locations to all-inclusive luxury resorts.

Colell: He notes that Palladium also favors the Dominican Republic and Jamaica for future development. The company is building and renovating all-inclusive properties in these two countries.

CHALLENGES AND OPPORTUNITIES

López: Elevated interest rates and shifting demand patterns are keeping underwriting standards tight, while upcoming election cycles and the reconfiguration of global supply chains may temper foreign investment in the near term. Currency volatility in certain markets also underscores the need for proactive FX management to preserve stability and performance.

Elizondo: Construction costs and inflation are affecting operating costs.

Colell: One of the major challenges we foresee is the uncertainty of global economic conditions and how they may affect travel demand, especially from key source markets like the U.S….  [But] there are significant opportunities. The growing interest in experiential travel, sustainability, and wellness tourism opens up new avenues for differentiation and value creation. Digital transformation also presents a chance to enhance operational efficiency and guest satisfaction.