Caribbean Luxury Hotels Embrace Branded Residences: How the Region is Shaping the Future of Travel and Tourism-What You Need To Know Now

Published on December 16, 2025

The Caribbean luxury hotel market is undergoing a transformation, with branded residences becoming a central element in hotel developments. As the demand for high-end, personalized travel experiences grows, luxury hotel developers are increasingly focusing on mixed-use properties that combine traditional hotel services with residential options. This shift is driving investment in branded residences, offering both investors and travelers an opportunity to secure luxury accommodations while also capitalizing on the booming tourism market.

At the 2025 Caribbean Hotel Investment Conference & Operations Summit, industry leaders discussed how offering branded residences has become a key factor in ensuring faster return on investments. These developments not only provide high-end living spaces but also attract a new type of traveler—those seeking longer stays, more space, and exclusive services.

A New Era for Branded Residences: Luxury Hotel Developers Seize the Opportunity for Faster ROI

As the demand for branded residences continues to soar in the Caribbean, hoteliers are seeing them as a win-win for both owners and buyers. Carlos Crovato, head of lifestyle development at Hyatt Hotels Corp., explained that the addition of residential components to hotel developments provides owners with a faster return on investment. This trend has only gained momentum since the pandemic, as travelers have increasingly sought out spaces that offer a blend of luxury living and hotel services.

The pandemic also contributed to a shift in travel preferences, with many visitors opting for longer stays in destinations that offer home-like amenities. The demand for branded residences has grown, and this trend shows no signs of slowing down, with Pamela Vasquez, senior director of development for Hilton in the Latin America and Caribbean (CALA) region, noting that the demand for residential units in the region has increased by 14%.

Why Branded Residences Are Essential for Luxury Hotel Developers in the Caribbean

In today’s highly competitive luxury travel market, hotel developers are increasingly relying on branded residences to enhance their offerings and leverage capital. According to Hugo Mirabal, director of feasibility and development at Marriott International, nearly nine out of ten projects he is currently working on include branded residences. The need for high-end residential units is not just a luxury add-on; it has become an essential part of the development strategy, particularly in the Caribbean, where real estate prices are soaring.

Vijesh Patel, director of development at Six Senses, pointed out that in the ultra-luxury segment, branded residences are not merely an additional feature—they are a necessity. He emphasized that with construction costs and labor prices at historic highs, branded residences help offset costs and provide a steady income stream for developers. These properties are increasingly important for attracting wealthy investors who seek both a luxury home and the potential for rental income.

Generational Travel and the Rise of Multi-Generational Residences in the Caribbean

A key driver behind the demand for branded residences in the Caribbean is the rise of multi-generational travel. Pamela Vasquez from Hilton mentioned that families traveling together are increasingly looking for accommodations that can cater to several generations under one roof. This trend has fueled the demand for three-bedroom residences, where grandparents, parents, and children can all stay in one luxury space, further driving the growth of branded residential offerings.

As this trend continues to grow, developers are recognizing the importance of offering larger, flexible accommodations that appeal to families seeking comfort and privacy during their vacations. In addition to larger units, the luxury services offered at branded residences—such as private chefs, concierge services, and on-demand activities—are becoming key selling points for the Caribbean’s high-end market.

Sustainability and Community Engagement: Key Focus for Luxury Hotel Developments in the Caribbean

While luxury travelers expect exceptional amenities, they also want to ensure that their accommodations reflect sustainable practices and community engagement. Hoteliers in the Caribbean are becoming increasingly aware of the need to balance high-end luxury with eco-friendly initiatives. Hugo Mirabal of Marriott discussed how developers must consider climate change and natural disasters like hurricanes when designing properties in the Caribbean. This means incorporating sustainable building materials and making properties resilient to the region’s unpredictable weather patterns.

Additionally, developers are focusing on building hotels that integrate with the local community, with an emphasis on sourcing local goods and employing local talent. This is not only important for attracting younger, socially conscious travelers, but it also supports the broader Caribbean economy.

Personalized Luxury Experiences: The Future of Caribbean Travel

The next big trend in the Caribbean luxury travel market is the move toward hyper-personalized experiences. Vijesh Patel from Six Senses emphasized that travelers increasingly want their stays to be tailored to their unique preferences, whether that means curated excursions, private tours, or personalized services. The Caribbean, with its diverse islands and rich culture, offers the perfect backdrop for creating bespoke holiday experiences.

From private yacht charters in the British Virgin Islands to luxury spa treatments in the Bahamas, hoteliers are increasingly focused on providing guests with customized travel experiences that reflect the essence of the destination. The demand for personalization will only continue to grow as travelers seek to create unforgettable memories in one of the world’s most sought-after vacation destinations.

Conclusion: The Future of Luxury Travel and Development in the Caribbean

As the Caribbean continues to evolve as a premier destination for luxury travelers, the trend toward branded residences and personalized experiences will play a pivotal role in shaping the region’s future. With demand for high-end properties at an all-time high, hotel developers are strategically leveraging branded residences to meet the needs of both investors and travelers. Whether it’s offering multi-generational family accommodations, incorporating sustainable building practices, or creating tailored experiences, the future of luxury travel in the Caribbean looks set to thrive on innovation and personalization.

For travelers seeking a high-end escape in the Caribbean, the region’s growing portfolio of branded residences offers a chance to experience the ultimate in luxury living, while contributing to the local economy and environment. As the Caribbean hospitality industry continues to evolve, the focus on personalized, sustainable, and community-driven luxury will define the next generation of vacation experiences.