Sustainable hotel and resort development in the Caribbean: Strategies for a resilient hospitality future

MIAMI--The Caribbean has long been synonymous with idyllic beaches, clear waters, and vibrant cultural heritage, assets that have positioned the region among the world’s most desirable tourist destinations. Yet these same natural and cultural resources are increasingly vulnerable to climate change, rising operating costs, and shifting global expectations around sustainability. Fortunately, modern and traditional measures can be taken not only to mitigate these issues and protect lodging properties, but also to enhance an asset’s value, reputation, and lifespan.

Climate risk and resilience

The Caribbean is disproportionately affected by climate-related hazards such as hurricanes, coastal erosion, sea-level rise, heat waves, and freshwater shortages. Sustainable development must incorporate resilience planning to protect both assets and communities. Strategies include:

• Elevated and reinforced structures: New builds increasingly incorporate hurricane-resistant engineering, flood-proofing, and elevated mechanical systems.
• Nature-based defenses: Mangrove restoration, coral reef rehabilitation, and dune stabilization can reduce storm-surge impacts while enhancing biodiversity.
• Water security investments: Rainwater harvesting, greywater reuse systems, and advanced desalination technologies can reduce operational risk on water-stressed islands.
• Climate-responsive design: Orientation, shading, and passive cooling strategies can reduce energy loads while improving guest comfort.

These measures help protect the physical property and create operational efficiencies.

Energy planning and utilization

Energy is among the Caribbean’s largest operating expenses, driven largely by dependence on imported fossil fuels. Transitioning to renewable and efficient systems is both a sustainability strategy and a cost-containment measure. Examples include:

• Solar PV and battery storage: Many resorts now offset 20% to 80% of their energy demand.
• High-efficiency HVAC and smart controls: Given the region’s cooling needs, efficient air-conditioning systems and occupancy-sensing controls can deliver substantial savings.
• Microgrids: Hybrid renewable microgrids can improve reliability in islands with unstable grids.
• Green building certifications: LEED, EDGE, and Green Globe are increasingly used to benchmark and standardize performance.

As part of HVS fieldwork, research, and interviews, owners, developers, and operators are increasingly using these approaches to improve NOI and reduce seasonal volatility, contributing to higher valuations.

Water, waste, and circularity: building closed-loop systems

Tourism facilities are heavy users of water, single-use plastics, and imported goods. Islands with limited landfill capacity require hospitality businesses to adopt circular resource management. Measures include:

• Advanced wastewater treatment: Onsite treatment can enable safe reuse for irrigation and reduce marine pollution.
• Rainwater harvesting: Capturing rainwater reduces reliance on municipal supply.
• Greywater reuse: Greywater can be redirected for landscaping irrigation.
• Low-flow fixtures: Water-saving fixtures reduce overall consumption.
• Composting and biodigesters: Resorts can convert food waste into soil enhancers or biogas, supporting local agriculture and reducing landfill loads.
• Eliminating single-use plastics: Refillable amenities and reusable alternatives can reduce waste and costs.
• Sustainable procurement: Local sourcing of food, materials, and furnishings can reduce carbon footprint and deepen community engagement.

Circularity also strengthens brand reputation, particularly among environmentally conscious travelers.

Community integration and social sustainability

Sustainable development must extend beyond environmental performance and create socioeconomic benefits. Caribbean hospitality depends fundamentally on community partnerships. Sustainable projects increasingly emphasize:

• Local workforce development: Training programs in hospitality, renewable energy systems, culinary arts, and management can strengthen the local talent pipeline.
• Fair-wage employment and career mobility: Retention and service quality improve when staff have growth opportunities.
• Community-linked tourism products: Partnerships with local craftspeople, tour operators, and farmers can enrich guest experiences and diversify community income.
• Cultural heritage preservation: Design and programming that reflect local identity can foster authenticity and reduce the homogeneity common in global resort development.

For many islands, tourism can, and must, serve as a catalyst for broader economic resilience.

Financing the sustainable transition

Sustainable hotel development can require higher upfront investment, but it often yields long-term operational savings and stronger asset value. New financing mechanisms are helping to close the gap, including:

• Green and blue bonds: Financing that supports marine protection or carbon reduction.
• Concessional climate finance: Low-interest funding for renewable energy and resilience upgrades.
• Sustainability-linked loans: Rate reductions tied to measurable performance indicators.
• Public–private partnerships: Incentives aligned with national sustainability goals.
• Government incentives: Tax credits, duty waivers, and fast-track permitting.

Potential value benefits include lower operating costs through energy and water savings, and reduced insurance premiums for climate-resilient assets. Investors are increasingly factoring environmental risk mitigation and ESG performance into underwriting decisions.

Guest expectations and market positioning

Today’s travelers, especially in luxury, adventure, and millennial segments, expect sustainability to be built into the guest experience rather than added later. Guest-facing initiatives can include:

• Transparency about energy and water initiatives
• Opportunities to participate in conservation activities
• Locally curated culinary and cultural experiences
• Visible efforts to reduce waste and protect ecosystems
• Certifications and third-party validation

Hotels that integrate sustainability into design and service delivery can attract higher-value guests and strengthen brand differentiation.

Sustainable hotel and resort development in the Caribbean is no longer only an environmental responsibility, it is now a strategic imperative that strengthens operations, resilience, community prosperity, and long-term competitiveness. The most successful players in the region will be those who adopt a regenerative mindset, designing projects that restore ecosystems, uplift local communities, and create hotels that are not just less harmful, but truly beneficial.

Source: Hotel Online is the hotel industry’s longest-running online news source, with a prolific repository that has grown to over 140,000 articles since its founding in 1995. At HVS, data is translated into insights through a methodology that includes primary interviews within local markets, allowing for real-time market intelligence and current data. For more information about the Caribbean region or a specific market, HVS invites readers to contact Shannon Sampson, HVS Caribbean leader.

‍