Caribbean Market

  • Caribbean is the most tourism dependent region in the world
  • Gross tourism revenues greater than 33% of exports
  • Estimated tourism employment at 2mm and more than 50% of labor force in some areas
  • 3,000 properties and more than 300,000 hotel rooms with 80% of inventory independent assets
  • Tourism is the primary foreign exchange earner exceeding traditional production sectors
  • Estimated arrivals at near 23mm via air in 2010 (equivalent to 23mm in 2007)
  • U.S. consumers make up close to 12mm visitors versus just under 5mm from Europe
  • Cruise Arrivals at 20mm in 2010 up from 1mm in 1970
  • Total tourism spending at more than $22 billion in 2010 (down from $27 Billion in 2007)
  • More than $5 billion in capital investment in 2010
  • Positive Long Term Fundamentals
  • Proximity to United States
  • Introduction of Low Cost Carriers
  • Regional Stimulus Packages
  • Relative value of vacation versus Asia and Europe
  • Perception of Caribbean as safe and stable region

Hotel / Resort Market

  • Lodging brands changing or revising their business model
  • Original focus on generating income through operating fees
  • Recent focus on licensed use of brands in residential context in exchange for future share of real estate sales
  • Expansion of hotel operator functions
  • Extending beyond hotel to include rental of resort residences and management of other operating components at project including food and beverage, spa, golf club and marina.
  • Investors primarily focused on luxury properties and distressed asset deal
  • New interest in all inclusive resorts due to value proposition for consumer
  • Customers and operators predominantly targeting all-inclusive and upscale properties
  • Luxury Competitive Set at $400 ADR with 60% Occupancy and close to $250 RevPAR in 2010
  • Numbers in 2011 are up 10% to 20% depending on property and jurisdiction
  • Total Competitive Set at $200 ADR with 70% Occupancy and close to $150 RevPAR in 2010
  • Numbers in 2011 are up 5% to 10% depending on property and jurisdiction

Vacation Home Market

  • In 2007, there were over 40 million American households comprised of individuals 50 and older who owned their main residence, of which 15 percent, or 6.6 million households also owned a vacation home
  • Most vacation homeowners either inherited their homes or purchased them with cash. Vacation home mortgage originations comprised less than 5 percent of overall mortgage market originations. In aggregate, there is more than $125 billion in outstanding mortgage debt on vacation homes
  • Most vacation homeowners make limited use of their homes with 50% of consumers spending 2 weeks or less and slightly more than 65% spending 4 weeks or less per year in their home
  • High net worth individuals invest in vacation homes which can potentially deliver a positive return on their investment through both rental income and capital appreciation, as well as give them a second home option when they go on vacation to a popular resort destination
  • The US State Department estimates that between 600,000 to 1,000,000 US Citizens live in Mexico, up from 200,000 ten years ago
  • Seventy six million US Baby Boomers are expected to retire within the next 20 years according to AARP