CBRE Roundtable Examines Shifting Travel Patterns and Development Trends in the Caribbean and Latin American

Executives at a CBRE roundtable outlined how shifting demand patterns are reshaping the Caribbean and Latin American lodging market, with mid-priced properties facing headwinds. At the same time, luxury, all-inclusive, and branded residential projects continue to expand.

The Caribbean and Latin American (CALA) lodging market experienced a mixed year in 2025, with performance varying across segments. While U.S. visitation decreased, intra-regional travel increased. Modestly priced properties struggled, while luxury and all-inclusive properties thrived. Major international brands continued to expand their presence by developing branded residences and experiential lodging properties. Despite challenges, industry leaders remain optimistic about future growth in the region.

Market Dynamics and Trends

In 2025, the CALA lodging market experienced fluctuations, driven by external factors such as political dialogue between the U.S. and Mexico, which contributed to a decline in U.S. travel. However, the market showed resilience, with corporate travel maintaining steadiness and intra-regional travel increasing. Companies like Hilton and Hyatt capitalized on these trends, expanding their luxury and all-inclusive offerings. Hilton’s debut of Waldorf Astoria Costa Rica and Hyatt’s acquisition of Playa Hotels & Resorts exemplify this growth.

Consumer Preferences and Trends

Consumer preferences continue to evolve, with a growing demand for personalized and authentic experiences. High-end resorts and all-inclusive properties are focusing on customization and technology to meet these demands. Emerging trends include wellness, cultural integration, and detour travel, where travelers seek unique experiences beyond traditional destinations. Hilton’s 2026 Trends Report highlights emerging consumer trends, such as “Hushpitality,” in which travelers seek destinations offering tranquility and silence.

All-Inclusive Model and Geographic Expansion

The all-inclusive model remains popular for its profitability and resilience in economic downturns. Major brands are expanding their all-inclusive portfolios in CALA, driven by consumer demand for convenience and comprehensive experiences. New ultra-luxury projects are emerging in non-traditional luxury markets, such as Quintana Roo, showcasing the region’s potential for high-end tourism. Hilton and Hyatt are strategically expanding their luxury offerings to meet this growing demand.

Branded Residences and Investment Strategies

Branded residences are becoming a key component of new resort developments, offering diversification and long-term revenue streams. These residences cater to a growing customer base seeking discerning living experiences. While some may worry about potential competition from traditional resorts, industry experts believe the two can coexist harmoniously. Investment strategies are focusing on select-service developments and mixed-use projects to enhance performance and asset value.

Challenges and Opportunities Ahead

As CALA hotel executives look toward 2026, they face challenges including rising interest rates, construction costs, and geopolitical tensions. However, opportunities abound in experiential travel, sustainability, and digital transformation. Maintaining operational efficiency and adapting to consumer expectations will be crucial for long-term success. Industry leaders emphasize the importance of agility and innovation in navigating these challenges and seizing growth opportunities.