Caribbean hotels achieved an average occupancy rate of 73.4 percent from January through July 2026, registering a 5.4 percent increase compared to the same period in 2025. Analytics firm STR reported year-over-year growth in occupancy rates for every month in the first seven months of 2026.
Monthly Occupancy Performance Shows Sustained Gains
Occupancy rates rose every month from January through July 2026, with increases ranging from 1.7 percent in January to 7.8 percent in March. Occupancy stood at 73 percent in January, climbed to 77.9 percent in February, and peaked at 80.5 percent in March, which was the highest monthly occupancy recorded in the period. April’s
occupancy rate was 74.5 percent, followed by 67 percent in May, 68.6 percent in June, and 72.6 percent in July. July’s year-over-year increase of 7.3 percent marks another significant monthly gain for the region.
Average Daily Rate and Revenue per Available Room Increase
Caribbean hotels maintained higher average daily room rates (ADR) throughout the period, contributing to double-digit growth in revenue per available room (RevPAR). ADR peaked at $457.13 in March, with monthly rates ranging from $325.10 in June to $448.90 in February. July recorded an ADR of $329.77, representing a 1.6 percent increase over July 2025. RevPAR displayed strong year-over-year gains every month, including a 13.6 percent increase
in March to $367.86 and a 9 percent rise in July to $239.28. Through July, the average RevPAR stood at $288.90, up 11 percent versus 2025.
Room Demand and Supply Trends Affect Occupancy
Total occupied room nights in the Caribbean reached approximately 40.1 million from January through July 2026, with total available room nights totaling about 54.6 million during the same period. Supply declined each month, with reductions ranging from 1.5 percent in January to 10 percent in July. While demand increased year-over-year from January through May, it decreased by 0.7 percent in June and by 3.4 percent in July. Occupancy gains during June and July persisted
because the drop in available rooms exceeded the decline in demand.
Strong Occupancy Growth Extends Beyond Winter Season
Occupancy gains have been sustained through the early summer months, with July occupancy at 72.6 percent exceeding levels in June and May. The continuation of above-2025 occupancy during this period illustrates that the region’s hotel market is experiencing a demand recovery extending beyond the traditional winter high season. July saw more than 5.48 million room nights occupied, an increase from approximately 5.17 million in June.
STR’s data documenting seven consecutive months of year-over-year occupancy growth highlights the Caribbean’s robust hotel market performance throughout the first half of 2026.
