Hotel occupancy across the Caribbean region averaged 73.4 percent from January through July 2026, registering a 5.4 percent increase over the same period in 2025, according to STR data reported by Caribbean Journal. Every month in 2026, from January through July, saw year-over-year occupancy gains, ranging from 1.7 percent in January to a peak of 7.8 percent in March. July posted a 7.3 percent increase as occupancy reached 72.6 percent, surpassing the June figure of 68.6 percent.
Average Daily Rate and Revenue Growth
Average daily rates (ADR) rose each month from January through July 2026, with a yearly high of $457.13 in March and $329.77 in
July. Through July, the overall ADR averaged $393.50, a 5.3 percent increase compared to 2025. Revenue per available room (RevPAR) showed strong double-digit growth, with the highest monthly revPAR recorded at $367.86 in March and $239.28 in July. The seven-month average RevPAR was $288.90, marking an 11 percent year-over-year growth.
Room Night Demand and Supply Trends
Supply contraction contributed to occupancy gains, with available room nights dropping monthly since January, culminating in a 10 percent year-over-year decrease by July. Total available room nights from January to July stood at approximately 54.6 million, down 3.9 percent compared to 2025. While overall demand increased from January through May,
occupied room nights reached about 40.1 million during the seven-month span, up 1.2 percent year over year. Demand declined slightly in June and July but was offset by a sharper contraction in supply, allowing occupancy rates to continue rising.
Supply Reduction Versus Demand in Summer 2026
The increase in occupancy despite a dip in demand during June and July resulted from the available room supply declining more sharply. For instance, July demand decreased by 3.4 percent year over year, but supply shrank by 10 percent, resulting in more rooms being occupied relative to supply. This supply reduction trend accelerated from a 1.5 percent drop in January to
a 10 percent drop in July.
Occupancy Gains Extend Beyond Winter Season
Occupancy improvements sustained through the summer months, beyond the Caribbean’s traditional winter high season. Monthly occupancy rates stayed well above 2025 levels in all seven months, with five months showing increases exceeding 5 percent. The combined occupancy rate of 73.4 percent in early 2026 is significantly ahead of 2025’s performance, reflecting continual strength in the Caribbean hotel market throughout the period.
STR provided the Caribbean hotel performance data for January through July 2026. The steady climb in occupancy and rate metrics indicates robust demand within the Caribbean hospitality market during the first seven months
of 2026.
