Investments, new properties and challenges of a sector in full transformation.
SANTO DOMINGO. – The Dominican Republic will close 2025 as one of the most dynamic tourist markets in the hemisphere , not only because of the record number of visitors, celebrated by the Ministry of Tourism, but also because in the last 12 months the industry experienced a transformation marked by a strong shift of capital towards this niche in the country.
This translates into a surge in investment in new properties, accelerated expansion of the hotel pipeline (portfolio of projects underway or confirmed), international alliances, and a sustained flow of foreign investment that is reshaping the national tourism offering.
In summary, the country strengthened its tourism industry to such an extent that international organizations highlighted its role as an example of solid recovery and sustained expansion in the Caribbean, following the COVID-19 pandemic that began in 2020.
A pivotal year for luxury
Beyond the headlines about the arrival of tourists, in 2025 high-end projects such as St. Regis Cap Cana (inaugurated on May 1), the relaunch under a new brand of Wyndham Alltra and other converted assets in Punta Cana came into operation and were renovated, marking a milestone in the expansion of international luxury.
Large-scale international alliances, such as the partnership between Grupo Piñero and Hyatt , with estimated investments of hundreds of millions of dollars in remodeling and operation of assets in Punta Cana-Bávaro, added to a notable increase in boutique openings and the entry of European operators into the area.
In short, the Dominican Republic not only attracts tourists, but also global hotel capital seeking to position itself in the most stable Caribbean market.
The pipeline that changes the landscape
The most revealing indicator of consolidation is the pipeline of projects in planning, pre-construction, and construction. At year-end, the country had 81 hotel projects in the pipeline, totaling 17,351 rooms in various stages (from planning to construction). This figure, taken from the quarterly industry monitoring report, places the country among the fastest-growing hotel markets in Latin America.
Sector monitoring reports (Lodging Econometrics and industry summaries) indicate that a large part of that portfolio is concentrated in already consolidated hubs, such as Punta Cana/Cap Cana and in emerging destinations such as Miches, northern areas and projects in Pedernales.
The projection offered by these documents is that 2026 will be a year with significant openings as the works of several projects that are currently underway are completed.
To put the magnitude into perspective, if a significant portion of the pipeline (between 50% and 70%) comes online during 2026, the Dominican Republic could add between 8,676 and 12,146 hotel rooms next year. This is the figure that sector analysts are focusing on, estimating that 2026 could see a rate of room delivery comparable to the country's historical "expansionary cycles."
Foreign investment and economic flow
– Tourism revenue: the Central Bank reported US$8.5 billion between January and September 2025, a figure that confirms the sector's ability to generate foreign currency and justify new investments.
– Hotel supply: ASONAHORES estimates more than 90,000 rooms in 2025, with average occupancies close to 80% in key months, which creates the need to expand the existing capacity and, in turn, investor confidence in the absorption of new supply.
– Financing: mix of international chains, institutional funds and public-private schemes with state infrastructure (ports, airports, aqueducts).
– Risks: The Central Bank warns that profitability depends on stable demand, control of cost overruns, and supply management to avoid downward pressure on tariffs. In other words: money is committed, but its return is subject to operational and macroeconomic conditions.
The international perspective
The Dominican Republic's performance aligns with a solid global trend. The UNWTO reported in 2025 that global tourism showed "resilience and sustained growth" and cited the Dominican Republic as a benchmark in the region for surpassing pre-pandemic levels.
The World Bank, in its 2025 investment guides and macroeconomic analysis, emphasized that Dominican tourism maintains a strategic role, although it cautioned about the need to strengthen infrastructure, sustainability, and environmental management.
In other words: the Dominican Republic is growing, and the world recognizes it. But the challenges remain.
Growth Challenges
There are at least four major areas that pose challenges to the growth of tourism and therefore the country's economy: infrastructure, environmental risks, dependence on source markets, and regional competition
1. Infrastructure: Roads, airports, and water and energy networks must grow at the pace of development. Central Bank reports warn that public and private investment must be better synchronized to sustain growth.
2. Environmental risks: Sargassum seaweed was a major issue in 2025, with incidents affecting beaches and tourism operations. The region, including the Dominican Republic, announced cooperation with Mexico to manage the phenomenon.
3. Dependence on source markets: Diversifying beyond the US and Canada is becoming more than a strategy; it's a necessity to sustain demand.
4. Regional competition and overcapacity: With thousands of new hotel rooms on the way, the risk of upward pressure on rates is growing should global demand slow.
2026: the year of major openings
In short, 2025 laid the groundwork and 2026 will bring the harvest, with a robust portfolio and dozens of projects under construction, new luxury properties, consolidation of Miches as an emerging hub, more activity in Cap Cana and Punta Cana, progress in Pedernales, relaunches under global brands, and also greater pressure on infrastructure and sustainability.
