The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Baha Mar is sacrificing rates and yield to drive 2025 first quarter business volumes, its president revealed yesterday, with plans to “invest north of $38m” in upgrading and refreshing its product this year.

Graeme Davis, the Cable Beach mega resort’s president, addressing the Bahamas Hotel and Tourism Association’s (BHTA) first quarter meeting, said revenue per available room (RevPAR), a key indicator of resort industry performance, was expected to decline year-over-year through the three months to end-March 2025 as it bids “to grow some volume”.

And, while Baha Mar hopes to break ground on the Melia Nassau Beach hotel’s replacement “as early as possible in 2026”, both Mr Davis and Jackson Weech, general manager for operations at Atlantis, confirmed that The Bahamas’ two mega resorts remain “cautiously optimistic” as they pay close attention to the impact Donald Trump’s trade and economic policies are having on the country’s largest visitor source market, the US.

“Just to wrap up 2024, we ended up being down about 2.5 percent in total revenues compared to 2023,” Mr Davis said, while revealing that each of Baha Mar’s monthly RevPAR comparisons for the 2025 first quarter is, or is projected to be, down year-over-year.

“Started out very strong in 2024, [but] with the safety warning and, of course, the elections, some instability in the economy, we had a downward trend throughout the rest of the year as many did, and ended up being 2.5 percent down from 2023,” he added.

“2025, though, is certainly starting off to be a fairly strong beginning. January’s RevPAR was down about 5 percent compared to last year. Occupancy was flat. Really, we’re trying to grow some volume with discounting rates, and trying to grow that volume. 

“February just wrapped up; RevPAR was down about 7.5 percent, still trying to keep some volume. Occupancy was about flat compared to last year, and March - with Easter shifting to April - we’re still seeing a strong March, but not as strong as last year. We’re looking to be down about 9 percent on RevPAR year-on-year in March. April, of course, being up about 8 percent forecasting with Easter shifting into that month.”

Acknowledging the global uncertainties stemming from US economic and trade policies, Mr Davis said the hoped-for increase in Canadian visitors as a result of anti-Trump sentiment has yet to occur. “We’re cautiously optimistic for the remainder of the year,” the Baha Mar chief said.

“Of course, with what’s happening in the US there’s uncertainty. We’re very, very cautious about what’s happening up there with the economy in the US. With the Canadian noise that happened in the marketplace, with the potential shifting of tourism away from the US, there is some potential upside with Canadians down to The Bahamas. 

“We’re all optimistic that we will see some of that, but we’ve not really seen that so far. We’re closely monitoring our geographic origins and noting there’s not a big bump going forward at this time or going forward from Canada, but we’re continuing to monitor and being cautiously optimistic with what’s happening in the US,” Mr Davis continued.

“Certainly our booking pace, we look strong for the second quarter headed into the summer months as well. We’re very, very busy working on our fourth hotel and architectural plans as we continue through 2025. The ground breaking is still planned for 2026; we hope as early as possible and, as soon as we have finalised our brand to be a partner on the property, we’ll certainly make an announcement there.”

Besides developing the architectural plans for the Melia’s replacement, Mr Davis said Baha Mar has already opened its new 385-seat jazz club. “We’re still this year investing north of $38m in capital improvements throughout the property,” he added. “We just completed a renovation to our guest rooms at SLS, now being just eight years-old.

“We continue to renovate and enhance the property throughout with this continued investment around the property. We’re excited about 2025 ahead, but are still being cautiously optimistic with what the business outlook is.”

Mr Weech, also the BHTA’s president, in giving an update on Atlantis’ performance and outlook, said both January and February were “strong” even though they “did not quite meet expectations”. He added: “Travellers are cautious, they are spending less and the booking windows are definitely shrunken and shorter.

“March is showing a very strong performance with occupancies north of 90 percent over our entire campus. Again, the good news about that is it continues to show strong seasonal demand.” Mr Weech said this momentum was being maintained into April and the Easter holidays, with occupancies “at this juncture across the campus well into the 90 percents”.

Atlantis marina operations have also shown “robust continued growth over the first two months, and certainly well into the second quarter”, Mr Weech added, while the Paradise Island mega resort’s group business for 2025 has been “back loaded, with a stronger performance expected in the third and fourth quarter”.

“Recent booking trends have been positive, and that is reflected in upward trends in terms of demand,” he said. “Transient remains strong, but that’s exhibiting some signs of instability. Graeme would have touched on the concerns emanating out of our premier market, and certainly those conditions we see as impacting, and we continue to very closely monitor them.”

Mr Weech said the third annual Paradise Island Wine and Food Festival has provided a further boost to occupancies. Atlantis has also opened a new Mexican-themed restaurant, plus golf and mini-sports bar, plus two escape rooms that feature interactive pirate and ocean themes, respectively.