Tough Reinvestment Decisions For Resorts
Many Bahamian hotels are facing “difficult reinvestment decisions” after deferring needed upgrades to their properties over three years of recession, although the Bahamas Hotel Association’s (BHA) president yesterday said the industry was “hopeful” 2011 full-year room revenues and nights sold would be up over 2010.
Stuart Bowe, responding to Tribune Business’s questions, said the return of the much-missed group business during the latter half of 2011, coupled with an increase in leisure travel, should propel both indicators ahead of year-over-year comparisons.
However, competition from other destinations meant the market was soft from a pricing power perspective, yet the Bahamian hotel industry was also having to contend with increasing business costs at the same time.