What we learned at ALIS CALA: Day 1
On the opening day of the ALIS CALA conference, Horwath HTL convened industry leaders to discuss the evolving landscape of financing hospitality developments across the Caribbean and Latin America
On the opening day of the ALIS CALA conference, Horwath HTL convened industry leaders to discuss the evolving landscape of financing hospitality developments across the Caribbean and Latin America. John Fareed, Horwath HTL’s Global Chairman, delivered the keynote address during the plenary session—drawing a full house with standing-room only—and shared “insights from the boardroom” that set the tone for highly engaged discussions throughout the day.
Our collective conversations with lenders, equity partners, and developers revealed several overarching insights:
1. Local Banking Partnerships Are Indispensable
Reliance on regional financial institutions remains a cornerstone of successful capital stacks. Strong relationships with local banks help bridge funding gaps and align project structures with market realities.
2. Transparent Tax and Exit Frameworks Build Confidence
Clear, well-defined approaches to tax planning and exit mechanisms are critical to securing long-term commitments. Investors seek assurance that liquidity events can be executed efficiently at the end of a project’s life cycle.
3. Long-Term Horizons and Capital Recycling Drive Strategy
Hospitality investments in the region increasingly span a decade or more, with periodic reallocation of debt and equity to match evolving risk profiles and return expectations.
4. Product Diversification Enhances Resilience
Expanding into adjacent offerings—such as branded residences and wellness-focused amenities—can broaden income streams and attract different guest segments, strengthening overall asset performance.
5. Conservative Interest-Rate Management Is Essential
Prudent use of hedging tools—treated strictly as insurance rather than speculative bets—helps stabilize project cash flows amid shifting rate environments.
6. Patience, Perseverance, and Adaptability Are Value Drivers
Success in these markets depends on thorough preparation, a deep understanding of local nuances, and the flexibility to adjust strategies based on on-the-ground insights.
7. Strategic Local Partnerships Accelerate Market Entry
Collaborations with established regional operators and service providers streamline development processes and de-risk early-stage execution.
8. ESG Considerations Are Integral to Capital Allocation
Environmental resilience, community impact, and governance standards are increasingly factored into both debt and equity underwriting decisions.
9. Emerging Sub-Markets Offer Untapped Potential
Beyond headline destinations, secondary and tertiary locations are drawing attention for their attractive yields and first-mover advantages.
10. Thorough Due Diligence Remains Non-Negotiable
Rigorous assessment of regulatory frameworks, permitting timelines, and title clarity underpins sound investment decisions and safeguards stakeholder interests.
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The strategic imperative for hotels
Sustainability is no longer a side conversation in the hospitality industry, it’s the blueprint for long-term success. As environmental regulations tighten and stakeholder expectations evolve, hotel owners must adopt sustainability strategies that align with global standards and deliver measurable outcomes. This is not merely an ethical decision but a strategic imperative that impacts operational efficiency, brand positioning, and long-term financial performance. However, crafting and implementing a robust sustainability strategy can feel complex. Hotel owners and executives need more than good intentions; they need specialist expertise to turn ambition into action.
The all-inclusive edge: a smart bet for Caribbean and Central America investors
The all-inclusive resort model has evolved significantly over the past decades, particularly in the Caribbean and Central America. Drawing on decades of on-the-ground experience across the region, and supported by our physical presence through offices in the Dominican Republic and Costa Rica, our team has closely observed the growing sophistication of this operating model. With the Dominican Republic and Jamaica setting early benchmarks, and a longstanding tradition of all-inclusive operations in Puerto Plata, Punta Cana, and Jamaica, we have witnessed firsthand how the appeal of the all-inclusive concept has steadily expanded across the Caribbean and Central America.
Navigating the inevitable reset
The hospitality industry, particularly in the United States, is at an inflection point. Economic indicators are flashing caution, sentiment is softening, and the easy growth of the past few years is giving way to a more sobering reality. At Horwath HTL, we believe this environment is not one to fear – but one to understand and strategically engage with.
Feasibility meets strategy: market-driven hotel development
Hotel development continues to gain momentum. Brands are growing, developers are active, and capital is cautiously finding its way back into the market. But in today’s environment, simple feasibility isn’t enough. Stakeholders need to understand not just whether a project is viable – they need to know how it will affect the competitive landscape, the community, and long-term asset performance. That’s why true feasibility requires an integrated approach – one that combines market impact insight with disciplined valuation and investment foresight.
Hotel asset values and strategic positioning in a policy-driven climate
Recent federal policy activity in the United States is reshaping the operating environment for hotels and travel-aligned businesses. The implications of new regulatory measures—ranging from tightened cross-border access to reductions in government expenditures and a reconfigured trade posture—are already filtering through to performance data and asset pricing in hospitality. At Horwath HTL, our focus is to help stakeholders interpret these signals through the lens of value: whether that’s the valuation of individual hotel assets, the enterprise value of lodging platforms, or the strategic advisability of hospitality investment. In today’s climate, our role centers on identifying how policy inputs are translating into financial outcomes for hotel owners, operators, and investors.
Why Valuation expertise matters
In today’s dynamic economic environment, hotel companies across the United States and globally are facing significant pressures due to escalating tariffs, rising inflation and persistent market volatility.