2025 Tourism Demand & RevPAR Forecast for Puerto Rico

Puerto Rico's tourism industry is on track for a record-breaking year in 2025. 

Strong gains in air and cruise passenger traffic, higher average daily rates (ADR), and sustained growth in hotel and rental revenues reflect a steady recovery and expansion in the hospitality sector. 

For construction investors, these trends signal high opportunity in tourism-related development.

At DEV Builders Group, we track these indicators closely to support our clients in executing timely, high-impact hospitality projects.

Air Travel Demand: Record Growth at LMM Airport

Luis Muñoz Marín International Airport (SJU) continues to set new benchmarks for inbound travel. 

In April 2025, total passenger traffic rose by 13.5% year-over-year, with international travel surging nearly 30% compared to the same period in 2024. The airport has now logged several consecutive months of double-digit growth in both domestic and international arrivals.

This surge is fueled by increased airline capacity, expanded routes, and a growing number of inbound travelers from the mainland U.S., Latin America, and Europe. Events, concerts, and conferences have also contributed to peak traffic during early spring. 

These Luis Muñoz Marín International Airport statistics demonstrate a clear trend in inbound tourist volume.

Cruise Tourism: Steady Recovery and Port Expansion

Cruise ship activity has regained momentum, with the San Juan cruise port undergoing improvements to accommodate larger vessels like Oasis-class ships. 

Pier 3 West restoration has progressed significantly and is expected to support full-scale operations by late 2025. Cruise lines including Royal Caribbean and Princess Cruises have reaffirmed commitments to Puerto Rico, with Princess Cruises planning a 2025 homeport deployment in San Juan.

These developments are expected to push year-over-year cruise arrivals above pre-pandemic levels, creating a ripple effect on local lodging, dining, and excursion services. 

Developers aligned with experienced Puerto Rico construction partners like DEV Builders Group are positioned to benefit from this demand surge through properly timed hotel, visitor center, and retail construction.

Hotel Performance: ADR and RevPAR on the Rise

Puerto Rico's hotel industry is experiencing strong pricing power. According to the latest STR data, Average Daily Rates (ADR) across hotels in Puerto Rico increased by over 8% year-over-year during the first half of 2025. 

Luxury and upper-upscale properties in San Juan and Dorado are reporting ADRs surpassing $340, while budget and midscale hotels have also seen stable growth.

ADR, or average daily rate, reflects what guests are paying per night on average. In Puerto Rico, this has risen sharply in 2025. Revenue per Available Room (RevPAR) has climbed in tandem, with a projected 6.2% growth in 2025 compared to the previous year. 

RevPAR, or revenue per available room, is a key performance metric used in the hospitality industry to assess profitability. This growth is driven by both higher occupancy and rate increases, especially during event-driven tourism peaks.

At DEV Builders Group, we help hotel developers and commercial property investors optimize their construction plans to meet this rising demand efficiently.

Lodging Revenues & Short-Term Rentals

Puerto Rico’s lodging industry generated $819 million in revenue in the first five months of 2025, led by a 25% year-over-year growth in short-term rentals.

Vacation rentals in beach towns and metro areas continue to outperform expectations, with occupancy rates approaching 70% during peak months.

Despite some fluctuations between hotels and rentals, both segments are benefitting from rising demand and limited new inventory. Revenue trends are showing clear seasonality, with March and June outperforming historical averages.

At DEV Builders Group, our commercial and hospitality clients use these figures to align development timing and scale with market peaks. From small resort-style villas to large mixed-use lodging hubs, we offer a full range of construction support.

Seasonal Trends & Market Drivers

Monthly occupancy changes show spikes during high-profile concerts, festivals, and sports events.

For example, Bad Bunny’s 2025 Puerto Rico tour resulted in a measurable increase in hotel bookings across the San Juan area. Group travel and incentive bookings have also picked up, especially in Q2.

The hospitality market benefits from both international and domestic inbound tourists. Enhanced airlift from Florida, New York, and Madrid has expanded reach, while Act 60 investment incentives continue to attract extended-stay travelers and investors. 

This presents a construction opportunity not only for hotels, but also for visitor centers and event venues.

DEV Builders Group, for example, completed the Ron del Barrilito Visitor Center, now a key tourist destination blending heritage and tourism. 

Forecast: Continued Growth Through Year-End

Puerto Rico is poised to end 2025 with historic highs in inbound visitor volume, RevPAR, and lodging revenue. Monthly benchmarking suggests a 3.1% RevPAR gain island-wide by December, exceeding the U.S. national average.

Short-term rental ADRs are expected to normalize slightly after peak summer rates, but overall pricing and occupancy will remain strong due to continued cruise and air arrival momentum. Developers, investors, and hoteliers should prepare for sustained demand heading into 2026.

DEV Builders Group supports these stakeholders with full-service construction and project management, ensuring every project benefits from premium craftsmanship, on-time delivery, and full regulatory alignment. 

What This Means for Developers and Investors

Puerto Rico’s hospitality growth is more than a tourism trend; it’s a call to action for smart development. The convergence of record air travel, recovering cruise traffic, rising ADRs, and investor-friendly tax incentives makes this a key moment for hospitality construction.

Partnering with a local leader like DEV Builders Group ensures your commercial project aligns with market timing, regulatory requirements, and construction quality. From visitor centers to hotel renovations, we build for long-term performance.

FAQ: Puerto Rico Tourism

and Hospitality Market 2025

Sources

1. LMM airport traffic climbs 13.5% in April, int’l travel jumps nearly 30%
2. Puerto Rico Passenger Traffic Continues to Climb
   
3. Dorado Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Puerto Rico, United States
   
4. Americas hotel performance update – May 2025
   
5. Puerto Rico lodging revenues hit $819M as rentals lead ’25 growth
   
6. Bad Bunny is making Puerto Rico the hottest trip of 2025
7. LARC forecasts robust 2025 U.S. RevPAR gains of 3.1%
   
8. San Juan Cruise Port assures it's working to restore Pier 3 West
   
9. Research Update: Puerto Rico’s lodging revenue hits $154M despite uneven hotel and rental performance​
10. Princess Cruises Plans to Homeport From Puerto Rico in 2025

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