Hotels in Caribbean, Mexico took a dip last October as per STR Global which was reported by Travel Daily News. There are 164 hotels with a total of 28,046 rooms under contract all throughout the Caribbean, Mexico region. The numbers represent 4.7% decrease in "Rooms under Contract" compared to October of last year, and a 12.9% year over year decrease in rooms under construction.
These data then includes the upcoming projects that are still in construction which includes those under final planning and planning stages. It does however include several projects that are not yet confirmed.
World Property Journal then reported that hotels in Caribbean are continually having a profit raise.
Senior project manager at STR Analytic Joseph Rael then stated that:
"The Caribbean hotel market has been slow to recover from decreased demand levels in 2008-2010."
The vice president of sales at The Cotton Bay Club in the Bahamas, Robert Fortson, told the World Property Journal that the resort development is continually making an improvement during the past few months.
"Caribbean resort development is realizing fundamental improvements within the last twelve months as new project capital is beginning to leave the shores of North America and Europe in search of higher margins in our region. The demand for island communities (resorts) is led by the luxury segment. STR recently reported (September 2014) that the luxury segment is leading the 'in-construction' development pipeline throughout the Caribbean and Mexico."
He then added that:
"The broad demand for luxury product is further supported by the fact that the US alone accounts for 11.53 millionaire households (Federal Reserve-September 2014) creating confidence in our region. Thoughtful, natural and authentic real estate communities incorporating luxury boutique hotel brands are beginning to define successful resort development in our region as the luxury market shows signs of positive growth that will directly benefit the Caribbean."
