The Caribbean and Latin America are undergoing a hospitality renaissance, with global hotel giants like Hilton leading the charge. In a recent interview, Pablo Maturana, Hilton’s Vice President of Development for the Caribbean and Latin America, provided valuable insights into the factors fueling this exceptional growth, the company’s investment strategies, rising opportunities in secondary destinations, and the increasing emphasis on sustainability across the region.

Hilton’s Strategic Expansion in the Region

Hilton has committed to aggressive development in the Caribbean and Latin America (CALA), aiming to take advantage of growing international demand and the post-pandemic travel rebound. As of 2024, Hilton boasts more than 205 hotels across the region, with over 100 new properties in the pipeline. These projects span urban business centers to emerging resort areas, reflecting a diversified approach targeting both leisure and corporate travelers.

“Travel patterns are evolving,” Maturana explains. “Today’s guests seek unique experiences, whether it’s business in Mexico City or leisure in the Dominican Republic. Our strategy is to deliver flexible brands that cater to shifting demands and to partner with local developers who understand regional nuances.”

Brand segmentation is central to Hilton’s success. The group is rolling out multiple brands—including Hilton Garden Inn, Hampton, Curio Collection, and all-inclusive options—to serve a wide range of traveler needs and price points.

Market Drivers: Why the Caribbean and Latin America?

The Caribbean and Latin America have recovered far more quickly from the pandemic than many other global regions, thanks to open borders, a robust tourism base, and a surge in leisure travel. According to data from the United Nations World Tourism Organization (UNWTO), the region saw international arrivals nearly return to pre-pandemic levels in 2023, with hotspots like Mexico, the Dominican Republic, and Colombia leading the charge.

Maturana highlights several macroeconomic and travel trends driving growth:

• Return of International Leisure: Destinations like Cancun, Punta Cana, and Cartagena continue to attract record visitor numbers, enabled by investments in aviation infrastructure and targeted marketing by national tourism boards.
• Business Travel Rebound: Key urban centers such as Mexico City, Bogotá, and São Paulo are seeing robust business travel recovery, partly due to increased nearshoring of international business operations.
• Growing Middle Class: Rising incomes in Latin American economies are increasing regional travel, boosting demand for mid-scale and upscale branded hotels.
• Secondary Destinations: Travelers are seeking less-crowded, unique alternatives—spurring development in locations like Guanacaste (Costa Rica), Santa Marta (Colombia), and Puerto Vallarta (Mexico).

Innovation and Sustainability at the Forefront

Modern travelers are setting new standards for sustainability, wellness, and authentic local experiences. Hilton’s own Travel with Purpose program places environmental, social, and governance (ESG) factors at the core of its regional development, with targets including carbon-neutral operations by 2030 and a 50% reduction in water usage per guest.

Examples from across the region underline this commitment. The recently opened Waldorf Astoria Cancun was designed with advanced energy-efficient systems and local sourcing, while hotels in the Caribbean employ waste-minimization and coral-restoration partnerships, reflecting an integrated approach to responsible tourism.

“Guests are more mindful than ever—expecting genuine community engagement and clear sustainability credentials from the brands they support,” Maturana says. “Our obligation is not just to grow, but to do so responsibly by partnering with local communities and protecting the unique environments where we operate.”

Investment Opportunities and Regional Challenges

Despite a robust pipeline, the CALA hospitality sector faces distinct regional challenges—ranging from supply-chain disruptions to political uncertainties in select markets. Still, global investors are keen, drawn by favorable long-term prospects and the region’s relative currency stability in recent years. The IMF projects that Latin America and the Caribbean will experience stable economic growth of above 2.1% in 2025.

Hilton’s portfolio expansion has been enabled by innovative financing structures, mixed-use development models, and franchise partnerships. Particularly notable is the rise of all-inclusive resorts, a format seeing double-digit growth with American and European travelers post-pandemic.

“We’re seeing an unprecedented level of international investment into both mature and emerging markets across the Caribbean and Latin America,” notes Maturana. “Our partners bring capital, expertise, and a long-term vision aligned with our brand’s values.”

Future Outlook: Sustaining Momentum

The prospects for hospitality in the Caribbean and Latin America are overwhelmingly positive. Data from STR (2024) show hotel occupancy rates in the Caribbean have averaged over 65% in the first half of the year, outpacing many global markets. The demand for luxury, boutique, and eco-focused accommodations continues to drive development.

Hilton’s approach underscores several key priorities for sustaining momentum: deepening relationships with regional stakeholders, investing in workforce development, and leveraging digital transformation to enhance guest personalization.

As the region braces for another record-breaking high season, Hilton—and the broader hospitality sector—appear well-positioned to continue their rapid expansion. For travelers, investors, and local communities alike, the hospitality renaissance in the Caribbean and Latin America is only just beginning.