The Caribbean hotel industry is surging in 2014, with occupancy up 1.5% to 68%, average daily rate (ADR) increasing 6.4% to $194.66, and revenue per available room (RevPAR) rising 8% to $132.28. Overall room revenue for the Caribbean is projected to increase 8.9% in 2014. Several resort destination markets in the Caribbean have seen even larger increases in occupancy, ADR, and RevPAR from 2013 to 2014. The total development pipeline for Caribbean hotels includes 40 projects representing approximately 8,800 new rooms.

1. 1
State of the Caribbean Hotel Industry
January 2014
Steve Hennis
Director, STR Analytics

2. 3
Caribbean RevPAR Surging in 2014
% Change
• Hotels 1,720
• Hotel Rooms 181,413
• Occupancy 68.0% 1.5%
• ADR $194.66 6.4%
• RevPAR $132.28 8.0%
• Room Revenue $ 9.8B 8.9%

3. 4
Caribbean Occupancy
Running 12 Months Jan 2001 - Dec 2014
56
58
60
62
64
66
68
70
72
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
May-06
70.4% Dec-14
68.0%

4. 5
Resort Destination Markets
Occupancy %
2013 vs. 2014
76.5
66.8
73.1
62.9
66.4
63.0
57.9
77.0
69.7 69.0 68.2 68.0
62.7
56.8
45
50
55
60
65
70
75
80
85 2013 2014

5. 6
Caribbean Average Daily Rate
Running 12 Months Jan 2001 - Dec 2014
120
130
140
150
160
170
180
190
200
210
220
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Jan-08
$201.63
Dec-14
$194.66

6. 7
Resort Destination Markets
ADR (USD)
2013 vs. 2014
$230 $233
$183
$174
$118
$133
$113
$243
$230
$195
$183
$125 $128
$115
$90
$110
$130
$150
$170
$190
$210
$230
2013 2014

7. 8
Resort Destination Markets
RevPAR (USD)
2013 vs. 2014
$176
$147
$122
$109
$79
$98
$66
$187
$144
$132
$125
$87 $88
$66
$50
$70
$90
$110
$130
$150
$170
$190 2013 2014

8. 9
2014 Caribbean HOST Statistics
(Year End 2013 data in USD)
2013 Performance
• Gross Operating Profit
 25.5%
• Net Operating Income
 17.4%
• House Profit  23%
Notable YOY Changes
• Rooms Department Profit
12.2% (±$5,100 PAR)
• F&B Departmental Profit
 29.3% (±$2,600 PAR)
• A&G Costs
 12.1% (±$1,500 PAR)
*Same-store hotels, 37 participants

9. 10
Total Caribbean
Hotel Development Pipeline
Phase Projects
In Construction 15
Final Planning 10
Planning 15
Active Pipeline 40
Approximately 8,800 rooms

10. 11
3 Largest Projects in Caribbean Active Pipeline
Project Name Phase Rooms
The Baha Mar Casino &
Hotel (Bahamas)
In Construction 981
Palladium Hotel Grand
Jamaica Resort & Spa
(Jamaica)
Final Planning 850
Grand Hyatt Baha Mar
(Bahamas)
In-Construction 844
November 2014