Dominican Republic is bucking the U.S. slowing trend, reports Jones Lang LaSalle Hotels
To-date indicators show that the
Dominican Republic’s diverse hospitality market is well positioned to weather the economic slowdown in the U.S. With recent political advancements, significant investments in infrastructure, and a large number of European-based travellers, U.S. hotel investors are finding the Dominican Republic to be a favorable destination for investments.
“The Dominican Republic’s high number of European-based travellers makes the country more resistant to economic changes than other Caribbean destinations which are more dependent on U.S. demand. This in turn has helped spur resort developments,” said
Fernando Garcia-Chacon, senior vice president for Jones Lang LaSalle Hotels. Garcia-Chacon reports an increase from European-based investors seeking valuation and or feasibility studies on various projects based in this area.
The Dominican Republic has beautiful beaches, a hospitable population, low labor costs, and, to a lesser degree, lower construction costs.
“Punta Cana is now shedding its all-inclusive label and is attracting investment in 4- and 5-star properties under brands such as Ritz-Carlton, Westin, and Fairmont,” said Garcia-Chacon.
“Additionally, Cap Cana, located adjacent to Punta Cana, features a major in-progress upscale hotel and residential development. This development offers multiple golf courses, one of the Caribbean’s largest marinas, as well as retail and other services required by a resort of this magnitude.”
Other Dominican Republic destinations are also receiving attention and investment. A Four Seasons resort is being developed in Casa de Campo—a major golf and residential community about two hours east of the capital city. In addition, there are numerous hotel and residential resort developments along the North Coast, attracting a number of boutique operators.
Proposed Luxury Resort Developments in Dominican Republic
- Hotel Location Opening Date
- Fairmont Roco Ki Punta Cana 2010
- Westin Roco Ki Beach & Golf Resort Punta Cana 2009
- Ritz-Carlton Cap Cana 2010
- Trump at Cap Cana Cap Cana 2010
- Sotogrande (NH Hotels) Cap Cana 2010
- Amman Resorts Playa Grande 2010
- Banyan Tree Samana 2010
- Four Seasons Casa de Campo 2009
Recent statistics from the
Central Bank show a 7% increase in air arrivals to the Dominican Republic in year-to-date 2008. With more than 250 weekly flights, the country experienced a steady 4% compound annual growth rate in passenger arrivals over the past five years.
“It would not be surprising to see other upscale and luxury brands announce development plans as air arrivals increase and demand fundamentals remain strong,” said
Kristina Paider, senior vice president for Jones Lang LaSalle Hotels.
Theodore Koumelis
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Thursday, July 03, 2008