Caribbean hotels are heating up, with rising occupancy rates and rising profits.

After a year in which hotel occupancy rates were mostly down, Caribbean hotels are starting to heat up.

Hotel properties in the region actually saw their biggest year-over-year increase of 2025 in December, a trend that continued into January, according to new data from hotel analytics firm STR.

Hotel occupancy increased 1.8% in January compared to January 2025, a larger increase than any month last year.

This resulted in a 4.9% increase in average daily rate to $420.35 and a 6.8% increase in revenue per available room.

Hotel sales totaled $2.6 billion in January.

These are all good signs. And it is consistent with what I have heard from hoteliers and travel destinations in the field. It also comes after what was seen as a very strong festive season across the region.

We have seen strong positive trends in our own analysis of the Caribbean travel sector, which could result in a strong and very welcome positive first quarter for the region.

STR’s data is based on a survey of 2,115 hotels comprising approximately 280,892 rooms in the wider Caribbean region.