NASSAU, BAHAMAS- Baha Mar is investing “north” of $38 million in capital improvements across its property this year, according to its top executive, who revealed that the mega-resort saw a 2.5 percent revenue drop in 2024 compared to the previous year.
While addressing the Bahamas Hotel and Tourism Association (BHTA) Board of Directors and Membership meeting, Graeme Davis expressed cautious optimism for 2025, citing flat occupancy rates in January and February and projecting an 8 percent rise in April revenues for a solid start to the year.
“In 2024, we ended up being down about 2.5 percent in total revenues compared to 2023. We started off very strong, of course, in 2024 with the safety warning and then, of course, the elections and some instability. Of course, in the economy, we had a downward trend throughout the rest of the year, as many did, and ended up being again 2.5 percent down from 2023. This year is certainly starting off to be a fairly strong beginning. January, while RIPPAR was down about five percent compared to last year, occupancy was flat. We’ve been trying to grow some volume with discounting rates and trying to grow that volume. February, just wrapped up, Revpar down about 7.5 percent,” said Davis.
He added: “We’re still trying to keep some volume. Occupancy is about flat compared to last year and March, of course, with Easter shifting to April, we’re still seeing a strong March, but certainly not as strong as last year. We’re looking to be about down 9 percent in Rewpar year-on-year in March. April, of course, being up about 8 percent forecasting year-on-year with Easter shifting into that month. We’re cautiously optimistic for the remainder of the year. There’s still, of course, with what’s happening in the United States, there’s uncertainty. We’re very, very cautious about what’s happening out there with the economy in the U.S. With the Canada noise that’s happening with the potential of shifting tourism away from the United States, there is some potential upside with Canadian business down to the Bahamas. We’re all optimistic that we’ll see some of that, but we’ve not really seen it so far. We’re closely monitoring our geographic origins and noticing that there’s not a big bump at this moment, not going forward or at this time from Canada, but we’re continuing to monitor.”
Davis noted that Baha Mar’s booking pace looks strong for Q2 and into the summer months.
“We’re very, very busy working on our fourth hotel and the architectural plans as we continue throughout 2025. Our groundbreaking is still planned for 2026, we hope as early as possible, and as soon as we have finalized our brand to be put on the property, we’ll certainly make an announcement there but we are very busy working with our architects to finalize those plans as well,” said Davis.
He further noted: “We’re still this year investing north of about $38 million dollars in capital improvements throughout the property. We just completed a renovation of all guest rooms in SLS, now eight years old. We continue to renovate and enhance the property throughout with these continual investments around the property. We’re excited about 2025 ahead, but again, still being cautiously optimistic about what the business outlook is.”
