Hotel Construction in the Caribbean and Mexico Declines in October

In the combined Caribbean and Mexico region, there are 164 hotels with a total of 28,046 rooms under contract, according to the October 2015 STR Construction Pipeline Report.

This reflects a 4.7% drop in rooms under contract from October 2014 and a 12.9% drop in rooms under construction from the previous year. The data on projects that are under the contract includes those that are in the planning, construction, and final planning stages but excludes those that are still being confirmed.

For the month, the area reported 12,186 rooms across 68 hotels under construction.

Four Chain Scale segments each accounted for 15.0% or more of the rooms under contract. They are as follows: Upper Midscale (17.0% with 4,772 rooms), Upscale (22.9% with 6,433 rooms), Luxury (20.7% with 5,799 rooms), and Upper Upscale (17.2% with 4,825 rooms).

The majority (34.9%) of rooms under construction were in the luxury category. Upper Midscale (18.0% with 2,191 rooms) and Upscale (16.8% with 2,047 rooms) accounted for more than 15.0% of the rooms under construction.