Barbados Hospitality Sector Expands with New Hotel Developments and Market Transactions

With record tourism growth and $1B in new hotels underway, Barbados is fast becoming the Caribbean’s most compelling play for hospitality investors

BRIDGETOWN, BARBADOS, August 26, 2025 /EINPresswire.com/ -- Barbados is undergoing one of the most active periods of hotel development in its history. Nearly one billion U.S. dollars in new hospitality projects are currently in progress, reflecting a broad commitment from international hotel brands and developers. These projects are not only increasing the island’s room capacity but are also expected to generate significant employment and associated economic activity.

Several high-profile developments are already reshaping the country’s hospitality landscape. Pendry Barbados & Residences at Six Men’s Bay has commenced construction, introducing a new luxury brand to the island. Hotel Indigo in Christ Church is also under development, while Hyatt Ziva Barbados on Lower Bay Street is expected to further expand Bridgetown’s capacity for accommodating international arrivals.

Additional large-scale projects are scheduled in the coming years. Royalton Vessence Barbados, located in Holetown and part of Marriott’s Autograph Collection, is scheduled to open in summer 2026. Beaches by Sandals at Heywoods represents one of the largest single hospitality investments currently underway in the Caribbean, with $800 million allocated to the creation of more than 500 suites. The Odyssey Hotel, a 180-room project on Maxwell Coast Road, is also in preparation to break ground. Collectively, these developments are expected to deliver more than 1,500 new rooms to the Barbados market and create thousands of permanent jobs for local residents.

Alongside new construction, there has also been notable market activity in the acquisition and sale of existing hotels. One example is the Palm Garden Hotel, a boutique property located on the island’s South Coast, which is currently under contract through NVEST Estates.

“The level of interest we are seeing in Barbados hotel assets is significant,” said Richie Quintyne of NVEST Estates. “There has been consistent engagement from both regional and overseas buyers, and the hotel sector continues to attract attention as new projects move forward and established properties come onto the market.”

The current pool of available opportunities illustrates the diversity of investor strategies within the sector. On one end of the spectrum are boutique hotels with established operations, offering buyers the ability to engage immediately in the tourism market. On the other are larger sites suited for redevelopment into condominiums, larger resorts, or branded hotel ventures. Properties presently on the market include a 65-room beachfront property in Barbados located in Christ Church, a redevelopment site at Silver Sands, and the Ocean 15 Hotel in St. Lawrence Gap. This range of assets indicates that the island can accommodate both conservative and growth-oriented investment approaches.

Tourism performance provides a foundation for these developments and transactions. In 2023, Barbados welcomed more than 700,000 stayover visitors, a number that continues to rise as international carriers expand routes into the island. This sustained growth in arrivals, coupled with the island’s modern infrastructure and established reputation for political and economic stability, has contributed to an environment where hospitality investments are seen as viable long-term assets.

Observers note that the combination of new development, ongoing acquisitions, and continued tourism growth highlights Barbados’ current position within the wider Caribbean hospitality sector. Unlike some regional destinations where instability has created challenges for investor confidence, Barbados offers a regulatory framework and investment climate that has been structured to encourage long-term capital flows.

Industry participants, including high-net-worth individuals, private developers, and institutional investors, have shown parallel interest in the island’s hotel sector. This alignment across multiple investor categories is seen as an indication of broader confidence in the island’s tourism base and long-term development outlook.

As the island prepares for the scheduled opening of several international hotel brands, and as acquisitions such as the Palm Garden Hotel progress, Barbados continues to demonstrate both active development and transactional momentum in its hospitality industry. Together, these trends mark one of the most significant periods of change and growth for the island’s tourism and Barbados Real Estate sectors in recent decades.

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NVEST Estates
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