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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 [1]. The airport has now logged several consecutive months of double-digit growth in both domestic and international arrivals [2].


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 [15]. 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 [19].


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 [3]. 


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 [4]. 


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 [5]. 


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 [17].


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 [8]. 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 [14].


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. 


View our hospitality market services →

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

  • How much has airport traffic grown in Puerto Rico in 2025?

     Passenger traffic at Luis Muñoz Marín International Airport grew by 13.5% year-over-year, with international travel seeing nearly 30% growth as of April 2025.

  • Is cruise tourism recovering in Puerto Rico?

    Yes. With infrastructure improvements at the San Juan cruise port and cruise lines returning, arrivals are trending above pre-pandemic levels.

  • What are the RevPAR projections for Puerto Rico in 2025?

     RevPAR is expected to grow by 6.2% in 2025, with luxury and midscale hotels experiencing both higher occupancy and ADR.

  • How are short-term rentals performing?

     Short-term rentals have seen a 25% revenue increase year-over-year, with strong occupancy in beach and metro zones.

  • Where can I learn more about hospitality construction in Puerto Rico?

     Visit DEV Builders Group’s Hospitality Construction market page on their website to see how we help developers bring tourism-centered projects to life.

OUR PORTFOLIO

FEATURED PROJECT TYPES

Bella Auto mall car dealership built by DEV Builders Group in Puerto Rico
Mazda Flagship car dealership built by DEV Builders Group in Puerto Rico

A Strategic Location with Unmatched Tax Incentives

WHY PUERTO RICO IS A STRATEGIC LOCATION

Puerto Rico is more than a destination—it’s a growth opportunity.


Tax Incentives


Acts 60, 20, and 22 offer major tax benefits for hospitality and commercial projects.


U.S. Legal Framework


Operate under U.S. law and banking systems while tapping into Caribbean and Latin American markets.


Tourism Growth


Year-round tourist activity drives demand for accommodations and entertainment.


Skilled Workforce


Strong local talent allows for quality construction without costly outsourcing.


Infrastructure Investment


Continuous improvements in roads, power, and internet connectivity.


Opportunity Zones


Access to federal tax incentives for qualified properties.

A large exterior room built by DEV Builders Group

CONTACT US

READY TO BUILD A DESTINATION THAT PERFORMS?

Contact DEV Builders Group to discuss your hotel, restaurant, or venue project. We’re ready to build your vision with care, speed, and excellence.

Our Office

Calle Aldebaran | 00920 San Juan | Puerto Rico

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Frequently Asked Questions

  • What tax incentives support hospitality developments in Puerto Rico?

    Puerto Rico’s Tourism Development Act (Act 74) provides strong incentives: up to 90 % exemptions on property, municipal, income, and construction taxes for hotels, casinos, and entertainment facilities.


    How DEV Builders helps: DEV Builders Group guides investors through incentives, handling zoning, tax-decree applications, and build-ready compliance.

  • How stable is demand for hotels and entertainment venues on the island?

    Tourism is rebounding: 5.1 million arrivals in 2022 with over $8.9 billion in revenue, a 39% increase from 2019. New mixed-use destinations like Distrito T‑Mobile continue to attract foot traffic.


    How DEV Builders Group helps: We optimize design and delivery around high-demand routes. Our Puerto Rico-native team captures local tourism patterns for greater project alignment.


  • How does Puerto Rico handle energy resilience and climate risk for hospitality builds?

    The island’s grid is prone to power outages, and new builds must consider hurricane risk and coastal flooding.


    How DEV Builders Group helps: We integrate resilient design—backup generators, hurricane-grade materials, elevated foundations, and mangrove-friendly drainage—all meeting local code and insurance requirements.


  • What financing options exist for hospitality projects in Puerto Rico?

    Qualified Opportunity Zones (OZs) cover 95 % of Puerto Rico, and Act 60 provides tax breaks for hotel investments. Investors can access C-PACE programs and explore EB‑5 visa capital tied to hotel development.


    How DEV Builders helps: We walk investors through OZ and EB‑5 planning, drafts feasibility builds, and collaborate with financing experts, helping you structure projects for both performance and compliance.