Content Library | Article

Growing Investment in Latin America and the Caribbean with Strong Pipeline and High Foreign Capital

The hotel sector in Latin America and the Caribbean is experiencing an expansion cycle driven by demand, robust infrastructure, and growing interest from international investors. According to JLL, the volume of hotel investments is expected to increase by 15% to 25% in 2025 compared to 2024, positioning the region as one of the most dynamic.

In the second quarter of 2025, the regional portfolio includes 748 projects and 116.6 million rooms, a 22% annual increase in projects, with destinations such as Mexico City, the Riviera Maya, and Georgetown, combining urban centers and beach destinations. Conversions and repositioning are gaining momentum, reducing the risk of oversupply.

Foreign capital confirms this trend. Mexico recorded US$2.87 billion in tourism FDI in 2024 (+129.5%), led by Baja California Sur and Quintana Roo. The Dominican Republic recorded US$4.5 billion in total FDI in 2024 and US$2.89 billion in the first half of 2025 (+15.3%). In the Caribbean, 62% of companies will increase CapEx in 2024 and plan to expand in 2025, according to CHTA/CTO.

The WTTC projects that Travel & Tourism will add US$206 billion to LAC GDP by 2035, with over 35 million jobs in the sector. This scenario, coupled with sustained ADRs and recovering occupancy rates, reinforces the region's attractiveness for investors seeking risk-adjusted returns in resort destinations and strategic urban markets. With institutional support, greater transparency in the real estate market, and projects aligned with ESG criteria, Latin America and the Caribbean are consolidating their position as one of the most promising destinations for global hotel investment in the coming years.

Sources consulted for this article:

Global Hotel Investment Outlook 2025, JLL | Latin America Hotel Construction Pipeline – Q2 2025, Lodging Econometrics | 2024 Performance / 2025 Outlook Report, Caribbean Hotel & Tourism Association | WTTC Economic Impact Release – LAC Forecast 2025