The Caribbean and Latin American (CALA) lodging market has experienced some challenges in 2025. While visitation from the U.S. has cooled down, intra-regional travel has increased. As always, market performance varies by segment. Modest-priced properties have struggled, but luxury and all-inclusive properties have prospered. The major international brands and developers continue to increase their presence throughout CALA by developing branded residences and highly experiential lodging properties.
To provide valuable insights, CBRE has gathered leaders from major hotel companies with a strong presence in the Caribbean and Latin America to share their thoughts on current trends and future growth in this vibrant region.
Our roundtable discussion participants 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 – Chief Financial Officer, Palladium Hotel Group
- Conor Lawler – Chief Financial Officer, Sandals Resorts International
2025 in Review
Market fundamentals have been a challenge in 2025, but hotel companies remain bullish on CALA and continue to expand.
The year began with some short-term challenges, likely driven by consumer confidence and market uncertainty. 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. Conor Lawler from Sandals
Most companies acknowledge a dip in travel from the United States. Volatility has been a common theme during 2025, mainly due to the political dialogue in the U.S. and Mexico,
said Maurice Elizondo from Posadas. Francesc Colell with Palladium noted, In the first half of 2025, we observed that the lodging sector continued to evolve positively, perhaps showing greater stability compared to previous years. However, what we noticed clearly was a cooling in demand from the U.S. toward Caribbean destinations.
For Caribe Hospitality, Bernabé López says shifts in demand segments have characterized hotel performance in 2025. Midway through 2025, we’ve seen shifts in demand dynamics — government and leisure segments have softened, while corporate travel has remained steady. This has led us to fine-tune our mix and pricing strategy to protect rate integrity and capture share in resilient segments.
Despite soft market conditions, both Hilton and Hyatt have expanded their footprint in CALA in 2025.
Pablo Maturana with Hilton highlights the growth opportunities in the lifestyle and luxury segments, as well as the premium economy space. The successful debut of Waldorf Astoria Costa Rica Punta Cacique—our first Waldorf Astoria in the country—and the signing of Conrad Los Cabos and Waldorf Astoria Turks and Caicos signal the beginning of a new era of luxury expansion in CALA. Concurrently, we signed Spark by Hilton Ponce—the first Spark-branded hotel in CALA.
For Hyatt, continued expansion of The Inclusive Collection is leading growth in CALA. Ana Tomicevic notes, The recent acquisition of Playa Hotels & Resorts marks a pivotal step forward. The introduction of proven brands in new markets like Playa Esmeralda, alongside growth in non-traditional all-inclusive destinations like Aruba, further positions Hyatt as a leader in the all-inclusive segment.
Conor Lawler describes the continued resurgence of the cruise industry in 2025 as a double-edge sword for hotels. The growth of cruises has created competition for team members, but their popularity has exposed more people to destinations where we operate hotels.
Meanwhile, Ana Tomicevic quotes a recent survey from Hyatt that explains the rise in demand for travel and their all-inclusive properties. 82% of U.S. respondents to a recent survey we conducted said they were not getting enough quality time with the people that matter most.
Consumer Trends
Providing customized experiences for travelers is a must, especially at high-end resorts and all-inclusive properties. Mauricio Elizondo notes, Entertainment and customization with the use of technology are essential to meet customer demands.
Francesc Colell sees several emerging consumer trends. Guests are increasingly looking for personalized experiences, a stronger connection with local culture, and greater emphasis on sustainability and wellness. In response, we are adapting our offerings by enhancing wellness areas and programs, integrating more locally inspired design and culinary experiences, and developing services that allow guests to tailor their stay according to their preferences. We are also investing in technology to improve the guest journey, from seamless check-in processes to mobile concierge services, while maintaining the warmth and hospitality that define our brand.
Hyatt’s research has also identified the shift toward personalized, authentic, and experience-driven travel. Ana Tomicevic says wellbeing and cultural integration, detour travel, and food-focused travel are rising trends. Detour travel, long popular elsewhere, is now a growing trend in the U.S. and aligns seamlessly with the Inclusive Collection footprint. Guests in Cancun can hop over to Isla Mujeres for a few days, or bachelorette trips in Playa del Carmen can explore Cozumel via day trip. Solo travel is also rising, and Hyatt Vivid Hotels & Resorts, designed for Gen Z travelers, offer casual comforts, authentic experiences, and flexible off-property exploration through trusted providers like Amstar.
Hilton also surveys travelers annually. Pablo Maturana highlights findings from Hilton’s newly released 2026 Trends Report. The Whycation is travel’s new starting point and travelers are not asking themselves, Where are we going?
. They are asking, Why are we going?
. Our findings indicate that in the year ahead, travelers are redefining the journey and choosing trips that begin with purpose, not just a place.
Three major consumer trends include:
-
Hushpitality: Seeking Sweet Silence
In 2026, Travelers will look for destinations where they can dial down life’s distractions. Seeking calm – even moments of silence – signals a change in why people are traveling, where they’re going and how they’ll relax. -
Home Comforts are the New ‘Carry On’
Travelers are grounding their journeys in familiarity, seeking comfort and a sense of home even while away. They’re bringing everyday routines along for the ride, like their favorite streaming show or even their four-legged companion. -
Generation Permutations: The Expanded (and Playful) Family Vacation
Children aren’t just enjoying the family vacation – they’re helping shape it. Parents aren’t just announcing where they are going, they are planning through their kids’ eyes, while also tapping into their own sense of curiosity and play.
Conor Lawler sums it up by saying, Guests are increasingly looking to immerse themselves in local culture, whether that’s through curated tours, experimenting with our local cuisine items, or engaging in experiences that connect them to the destination in a meaningful way.
All-Inclusive Hotels
Nearly all major international brands have added all-inclusive hotels to their portfolio, and CALA has been at the forefront of this proliferation.
Francesc Colell attributes the rise in all-inclusive development to three factors:
- The all-inclusive model has proven to be highly profitable and resilient, especially in times of economic uncertainty or geopolitical instability, as it offers guests predictable costs and a comprehensive experience.
- New generations of travelers increasingly value convenience, simplicity, and a wide range of services in one place.
- Major international hotel groups are looking to diversify their portfolios and gain market share in regions where all-inclusive has strong demand, such as CALA.
Mauricio Elizondo echoes the consumer’s preference for package pricing. The all-inclusive model remains embraced by the international travel industry, as it provides cost certainty for travelers while offering not only food and beverage, but also entertainment for both families and the adults-only segment.
At Hyatt, the ability to add new guest experiences at their all-inclusive properties has helped attract guests across multiple demand segments. Ana Tomicevic says, With new guest experiences such as cultural music therapy relaxation at Secrets Akumal Riviera Maya and elevated culinary experiences like Impression Makers Supper Club at Impression Moxché by Secrets, the Inclusive Collection appeals to nearly every travel segment—from FIT business to MICE to leisure travel groups marking milestone moments.
Conor Lawler from Sandals notes how guest loyalty programs have played a role in the expansion of all-inclusive hotels. The all-inclusive segment gives international brands an opportunity to provide their loyalty members with attractive resort destinations to redeem their points.
All-inclusive hotels also provide a platform for unique experiences today’s travelers crave. Across our Hilton All-Inclusive portfolio, we remain committed to delivering the unmatched experience our guests expect—growing thoughtfully and strategically to match the right hotel with the right traveler in the right location. An example is the recently opened Zemi Miches Punta Cana All-Inclusive Resort, Curio Collection by Hilton. This property offers a luxurious, high-end experience infused with a deep sense of place through curated programming, authentic culinary offerings, and immersive guest experiences,
says Pablo Maturana.
Geographic Expansion
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 in the region,
says Hyatt’s Ana Tomicevic.
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,
said Pablo Maturana. In response, Hilton plans to continue expanding its Hilton luxury portfolio including Waldorf Astoria, Conrad Hotels & Resorts, and LXR Hotels & Resorts, aiming to nearly double its presence across these three brands.
Conor Lawler notes that, The Caribbean’s geographic advantage and being the gateway to the U.S. ensures consistent demand. This, combined with the region’s beauty and cultural richness, ensures it will always be a long-term luxury destination.
Mauricio Elizondo explains the geographic expansion of luxury hotel development across CALA. Many of these projects are financially driven due to a residential component. The residential piece helps lower the capital cost of the project.
Branded Residences
Branded residences are another vehicle for global hotel brands to increase their presence in CALA. They have become an integral component of several new resort developments in Mexico and the Caribbean. The expansion of branded residences is largely driven by the ability to diversify investment within a project. The upfront cash flow from residence sales helps make large-scale developments feasible, while the ongoing rental pool income creates an attractive long-term revenue stream,
said Conor Lawler.
Tina Necrason from Hyatt explains why there is such an increase in consumer demand for branded residences. Today’s branded residences benefit from a growing customer base that is seeking out discerning living experiences rooted in community and wellbeing. In parallel, a significant transfer of wealth is occurring, creating an expansion of the target buyer base who desires turn-key homes for their families to grow and gather. Buyers are seeking out second homes in premier destinations, and they’re turning to trusted brands like Hyatt based on their experiences with our hotels’ elevated levels of quality and service.
Will branded residence use cannibalize the demand for traditional resorts? Francesc Colell does not think so. Conor Lawler adds, I don’t see branded residences cannibalizing traditional resort demand. They are distinct markets. Branded residences attract investors and lifestyle buyers, while resorts continue to appeal to travelers seeking vacation experiences and both can coexist in harmony.
Not all branded residences are in the luxury category. Hilton has a wide variety of projects in the pipeline that will offer branded residences,
said Pablo Maturana. In Brazil, we will debut the first Hilton branded residences with the upcoming opening of Qoya Residences Curitiba, Curio Collection set for Q4 2027.
Bernabé López notes, A key focus for future select-service developments will be deeper integration within mixed-use projects rather than standalone hotels. In our experience, this model consistently drives stronger performance by broadening demand sources, enriching guest experience, enhancing long-term asset value, and creating higher barriers to entry.
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.
Bernabé López says, 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 on advancing these opportunities, including what will be our first coastal leisure hotel—an important step in diversifying our traditionally corporate-focused portfolio and extending our presence into new demand segments.
At Posadas, Mauricio Elizondo says they are 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.
Francesc Colell notes that Palladium also favors the Dominican Republic and Jamaica for future development. They are building and renovating all-inclusive properties in these two countries.
Sandals continues to invest across the Caribbean, reinforcing our long-term commitment to the region as a whole,
says Connor Lawler. We’re actively planning for new properties, and reinvesting in our existing resorts. We are constantly innovating and reinventing our world-class experiences.
Hyatt listens to guests and World of Hyatt members to drive their investment activity. This has prompted the expansion of their portfolio with new resorts in prime locations, enhancing existing properties, and introducing new concepts like the Hyatt Vivid Hotels & Resorts brand. Ana Tomicevic adds, As part of Hyatt’s asset-light strategy, we continue to partner with developers and owners and collaboratively bring this vision to life. By focusing on brand management and operational expertise in the all-inclusive segment, we can ensure that each of Hyatt’s Inclusive Collection properties remains consistent in quality and differentiated offerings without the constraints of asset ownership.
Challenges and Opportunities
As CALA hotel executives enter 2026, what do they see as the challenges and opportunities that lie ahead?
Bernabé López – Caribe Hospitality
- 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.
- These dynamics are also reshaping opportunities. Tighter credit conditions and higher underwriting thresholds are limiting new supply and may prompt some owners to consider asset sales. For disciplined, well-capitalized investors, this environment creates selective openings to acquire or advance projects under more favorable competitive conditions.
- Maintaining operational efficiency and disciplined capital structures—while continuing to integrate sustainable, cost-efficient practices—will be essential to preserve competitiveness and long-term value as conditions normalize.
Mauricio Elizondo – Grupo Posadas
- Construction costs and inflation affecting operating costs.
Ana Tomicevic – Hyatt
- While this varies by market, we remain mindful of the current global financial climate and continue to adapt to best support our colleagues, members, guests, and customers. Operating in an agile environment allows us to listen closely to market feedback and evolve our offerings, introducing new and diversified on-site experiences to meet the changing needs of our guests. By embracing trends and actively listening to guests and World of Hyatt feedback, we will continue to differentiate the Inclusive Collection, attract a broader range of travelers, and reinforce Hyatt’s leadership in all-inclusive hospitality.
Francesc Colell – Palladium Hotel Group
- 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. Additionally, geopolitical tensions, rising operational costs, and labor shortages continue to put pressure on our industry.
- On the other hand, 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.
- The key will be to remain agile, innovative, and guest-centric, adapting to shifting consumer expectations while maintaining a strong brand identity and delivering consistently high-quality service.
Conor Lawler – Sandals Resorts International
- Many things can influence market confidence and travel patterns and that’s why we always stay agile and focused on delivering exceptional guest experiences. The combination of strategic investments, brand strength, and the region’s natural desirability positions us well for long-term success.
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