Executive Summary
Luxury Hotel in Turks & Caicos
Project Overview
The project consists of developing a sustainable luxury hotel in Turks and Caicos, inspired by the concept of the 1 Hotel South Beach, adapted to the exclusive environment of this Caribbean destination. Located beachfront with 600 feet of private beach, the hotel offers an unparalleled experience.
Luxury Accommodations
425 rooms and suites with an average of 700 sq ft, including exclusive penthouses and a majestic presidential suite with panoramic ocean views.
Premium Amenities
4 spectacular pools, including an exclusive rooftop adults-only pool, world-class Bamford Wellness spa, and 100,000 sq ft of unique event spaces.
Eco-Friendly Commitment
Innovative design with recycled materials, active marine conservation programs, and renewable energy systems that set new standards in sustainable hospitality.
Market Opportunity
Turks and Caicos has experienced significant growth in the tourism sector, presenting multiple market opportunities:
1.5M
Visitors
Total tourists in 2023
4.3%
Growth
Increase in tourism GDP
85%
Peak Occupancy
During high season
$90M
Annual Potential
Expected average revenue
Unmet Demand
Only 12% of local hotels have eco-certifications, creating an opportunity in the sustainable luxury market.
Market Evolution
New projects like Andaz Turks & Caicos (2025) are raising the luxury standard in the region.
Operational Performance
Occupancy rates maintain an annual average of 68-72%, with projected EBITDA margins of 25-30%.
Unique Value Proposition
The hotel will differentiate itself through a strategic combination of luxury and sustainability:
Eco-Friendly Premium Experience
Rooms: Organic mattresses, natural bath products, and Nexus technology for environmental control. Gastronomy: Menus with local and organic ingredients (50% regional sourcing).
Innovation in Sustainability
Solar-diesel energy: 40% reduction in emissions. Reef adoption program: Collaboration with TC Reef Fund. LEED Gold and EarthCheck certifications.
Exclusive Services
Priority access to private lagoon and premium water sports. All-inclusive packages with airlines (JetBlue, Delta) and Amex Platinum cards.
Financial Attractiveness
Total investment: $129.2M (70% financed at 30 years with a fixed rate of 5%). Projected ROI: 10-12 years, with a minimum required occupancy of 68%.
This project capitalizes on the rise of premium tourism in the Caribbean, offering a replicable model of responsible hospitality. Its innovative design and strategic partnerships position it as a leader in a growing market, with solid return projections and competitive differentiation.
Business Description
Hotel Concept
The project proposes a sustainable luxury resort inspired by the model of 1 Hotel South Beach, adapted to the Caribbean context of Turks and Caicos. It combines bioclimatic architecture with eco-efficient technology, offering:
- Premium experience: Rooms up to 3,500 sq ft, personalized services, and exclusive access to a private beach.
- Integrated sustainability: LEED Gold and EarthCheck certifications, 30% recycled materials, and marine conservation programs.
- Technological innovation: Nexus systems for environmental control in rooms and smart energy resource management.
Location and Key Features
Privileged Location
Situated in Turks and Caicos with 600 feet of private beachfront on the Atlantic. 25-acre property with a strategic location just 15 minutes from PLS airport and close to nature reserves.
Luxury Accommodations
425 units distributed in: 200 standard rooms, 100 junior suites, 60 1-2 bedroom suites, 20 homes, and premium suites, all designed with maximum comfort.
Premium Amenities
World-class facilities including 4 pools (1 adult-only rooftop), Bamford Wellness spa with 12 treatment rooms, 7 themed restaurants/bars, and 100,000 sq ft of common spaces with a kids club and Anatomy fitness center.
Mission and Vision
Mission
"To offer a regenerative luxury experience that harmonizes premium comfort with the active conservation of the natural environment of Turks and Caicos, driving responsible tourism development."
Vision
"To position ourselves as the leading sustainable resort in the Caribbean by 2030, being a benchmark in ecological innovation and hospitality with a positive impact."
Strategic Pillars
Environmental Pillar
Reduce the carbon footprint by 50% by 2030 through solar energy and circular economy.
Social Pillar
Train 80% of the staff in sustainable practices (partnership with Turks and Caicos Hospitality Institute).
Economic Pillar
Generate $2M annually in complementary income through ecotourism (adopted reef diving, conservation tours).
Key Operational Data
Total Investment
$129.2M with 70% financed at 30 years and 5% fixed rate
Job Creation
150 direct jobs and 200 indirect jobs in the region
Target Certifications
Triple international certification: LEED Gold, EarthCheck and GSTC
Strategic Partnerships
Key collaborations with TC Reef Fund, JetBlue Vacations and Amex Platinum
This business model integrates luxury, innovation and environmental responsibility, differentiating itself in a growing Caribbean market.
Market Analysis
The destination is experiencing sustained growth, positioning itself as a leader in the Caribbean with exceptional results.
1.5M
Visitors 2023
127% growth vs. 2019
87%
Occupancy
Projected for high season 2024-25
24%
Growth
In expected air arrivals
Key Market Trends
Premium Tourism
45% of visitors spend over $1,000 per night
Sustainability
70% of travelers prioritize hotels with eco-certifications
Geographic Diversification
54% growth in European tourists thanks to direct flights from London
Investment in infrastructure, including the new international airport in Providenciales and port expansions, supports these growth trends.
Target Customer Profile
The hotel will focus on four premium segments:
1
High Net Worth Travelers (40%)
Demographics: Couples (35-55 years old) and families with incomes over $300k/year.
Preferences:
- 1-2 bedroom suites (+700 sq ft) and personalized services.
- Exclusive experiences: protected reef diving, private beach dinners.
2
Corporate Executives and Events (25%)
Needs: Meeting spaces (100,000 sq ft), 5G connectivity and bleisure packages (business + leisure).
Budget: $2,000-$5,000/night for executive suites.
3
Honeymoons and Weddings (20%)
Occupancy Rates: 85% in oceanfront suites during high season (December-April).
Average Spend: $15,000-$30,000 per event.
4
Ecotourists (15%)
Interests: Marine conservation tours, carbon-neutral accommodations.
Origin: 65% U.S. (California, New York), 20% Europe (UK, Germany).
Competitive Analysis
Main Direct Competitors (2024-2026):
Competitive Strengths of the Project:
- Exclusive Location: 600 feet of private beach on Grace Bay, vs. 200-400 feet for competitors.
- Certified Sustainability: Solar-diesel system (40% emissions reduction) vs. 15-25% in others.
- Culinary Offering: 50% local ingredients vs. industry average of 30%.
Opportunities and Threats
1
1
Growth Opportunities
- European tourism: +19% (2024)
- Underserved premium events market
- Only 3 hotels with capacity +500 people
- Potential for partnerships with JetBlue and Delta
2
2
Market Challenges
- Construction costs: +22% vs 2023
- 85% of food is imported
- Risk of new taxes (5% on reservations)
3
3
Differentiation Strategy
Positioning as "regenerative luxury" through:
- EarthCheck certifications
- Active community programs
- Goal: 15% of premium market in 3 years
This analysis confirms the viability of the project in an expanding market, with clear differentiation from competitors and alignment with global trends in responsible tourism.
Services and Amenities
1. Room and Suite Types
The hotel will offer 425 units designed to meet the needs of premium travelers, ranging in size from 550 to 3,500 square feet.
Facilities
Exclusive Pools
Rooftop Pool: Adults-only, underwater bar, and sunset views.
Family Lagoon: With water slide and children's area.
Zen Pool: Tranquil environment with massage cabanas.
Event Pool: For private parties (capacity 200 people).
Family Lagoon: With water slide and children's area.
Zen Pool: Tranquil environment with massage cabanas.
Event Pool: For private parties (capacity 200 people).
Bamford Wellness Spa
12 treatment rooms with local organic products. Therapies such as Caribbean seaweed massages and sound rituals with seashells.
Anatomy Gym
Latest generation Technogym equipment. Daily beach yoga classes and functional training.
Event Spaces
Grand Ballroom: 50,000 sq ft for weddings and conventions.
Beachfront Pavilion: Outdoor area for 500 guests.
Beachfront Pavilion: Outdoor area for 500 guests.
Gastronomic Offerings
The hotel will have 7 culinary options, highlighting local ingredients in 50% of the menu:
Strategic Partnerships:
- Local suppliers: Caicos Pride Farms (vegetables), Blue Haven Fisheries (fish).
- Special menus: Vegan, keto and gluten-free options.
Additional Services
Unique Experiences
- Little Turtles Club: Educational activities on marine conservation
- Reef Guardians Program: Diving in protected reefs with marine biologists
- Eco-Friendly Transportation: Electric bicycles and Tesla vehicles for internal transfers
Premium Services
- Beach Check-in/out: Avoid lines through digital signature tablets
- Blue Luxury Package: Includes private dinner on a canoe and night massage under the stars
- 360° Concierge: Exclusive reservations at Michelin restaurants and private yachts
Technological Innovation
- Nexus Devices: Climate, lighting and entertainment control in rooms through AI
- Hotel App: Service reservations, digital menus and 360° virtual tours
This design of services and amenities consolidates the hotel as a benchmark in conscious luxury, combining exclusivity with certified sustainable practices.
Marketing Strategy
The hotel will position itself as the "Leading Sustainable Luxury Destination in the Caribbean", highlighting three pillars:
Regenerative Luxury
Premium experiences that actively contribute to environmental conservation
Authentic Exclusivity
Access to private beaches and unique eco-programs
Responsible Innovation
Eco-efficient technology and certified bioclimatic architecture (LEED Gold, EarthCheck)
2. Marketing Channels
Digital (70% of budget)
Traditional (30% of budget)
3. Budget and Key Actions
4. Success Metrics
5. Risk Mitigation
Seasonality Strategy
Low season "Green Escape" packages offering a 20% discount on suites and free conservation tours, maximizing occupancy throughout the year.
Loyalty Program
Reduced dependence on OTAs through an exclusive program that offers a 5% cashback on direct bookings and priority access to new facilities.
Market Objectives
Strategy designed to achieve a 25% market share in premium tourism by 2027, backed by focused investment and continuous measurement.
6. Organizational Structure
The hotel will operate with a flexible hierarchical model, prioritizing efficiency and personalized attention. The structure will include:
Total direct employees: 150 | Indirect: 200 (security, landscaping, transportation).
Key Processes
1. Guest Management
- Beach Check-in/out: Use of digital signature tablets to avoid lines.
- Personalized Service: Assignment of an eco-concierge for stays >3 nights.
2. Daily Operations
3. Sustainability
- Recycling: 90% of organic waste converted to compost for gardens.
- Energy: Hybrid solar-diesel system with hourly monitoring.
1. Human Resources Management
Recruitment and Personnel
- Priority profile: 60% local staff, 40% international with experience in eco-luxury hotels
- Partnerships: Internship program with the Turks and Caicos Hospitality Institute
Training and Development
- Mandatory modules: Nexus system management and marine conservation protocols
- Certifications: 80% of staff trained in EarthCheck standards by 2026
Benefits and Compensation
- Subsidized housing for employees in Providenciales
- Bonuses for sustainability goals (e.g. reduction in energy consumption)
2. Providers and Strategic Alliances
Selection Criteria:
- Certifications: Providers with Fair Trade or Rainforest Alliance seals.
- Location: Priority to companies within a 50 km radius (30% of total).
Operational Innovation:
- Employee app: Shift management, incident reporting and real-time sustainability metrics.
- Feedback process: Weekly guest surveys and monthly team meetings to optimize services.
This operational plan ensures efficient project execution, aligning human resources, processes and alliances with the goals of sustainable luxury and profitability.
Sustainability Strategy
The hotel will integrate sustainability as a cross-cutting axis of its operations, combining technological innovation, environmental conservation, and social responsibility. This strategy is articulated in three key pillars:
1. Ecological Initiatives
2. Conservation Programs
1. Marine Protection
- Reef Adoption: Collaboration with TC Reef Fund to restore 2 acres of coral (USD 150k/year). Guests can "adopt" corals for USD 500.
- Beach Cleanups: Monthly activities with employees and tourists (goal: 10 tons of plastic removed/year).
2. Terrestrial Biodiversity
- Iguana Sanctuary: Rehabilitation of 5 hectares for endemic species (e.g. Cyclura carinata).
- Botanical Garden: 300 native species on hotel grounds, with educational tours.
3. Local Community
3. Environmental Certifications
The hotel will seek to obtain and maintain three international seals:
4. Innovation in Sustainability
Nexus Technology
Integrated IoT sensor system that automatically optimizes room temperature and lighting, achieving a 15% reduction in total energy consumption.
Eco-Guest App
Digital rewards program where guests earn points for sustainable actions like reusing towels, which can be redeemed for free nights or exclusive tours.
5. Investment and Expected Results
This strategy will not only mitigate the environmental impact, but will also generate a 22% ROI in 5 years through operational savings and attracting conscious travelers, positioning the hotel as a pioneer in regenerative tourism in the Caribbean.
Financial Plan: Luxury Hotel in Turks and Caicos
1. Initial Investment and Financing Structure
Loan conditions:
- Term: 30 years (360 months)
- Fixed interest rate: 5% per annum
- Monthly payment: $485,504
- Total to be paid: $174,781,336 (principal + interest)
- Total interest: $84,341,920
2. Income and Expense Projections
Annual Revenue (Year 1)
Annual Operating Expenses
EBITDA Margin
3. Cash Flow Analysis (Years 1-5)
Assumptions:
- 5% annual revenue growth (driven by increase in premium tourism).
- Operating costs grow by 4% annually.
4. Return on Investment (ROI) and Break-Even Point
Return on Investment
- Total Investment: $129.2M
- Cumulative Cash Flow (5 years): $328.5M
- Simple Payback: 10-12 years (considering EBITDA and gradual amortization).
Break-Even Point
5. Sensitivity and Risks
6. Key Metrics
Source: Luxury Caribbean Hotel Benchmarks.
Conclusion
The financial plan confirms the viability of the project with an attractive ROI (10-12 years) and a breakeven point achievable at 38% occupancy, lower than the historical average of Turks and Caicos (68-72%). The financing structure, combined with diversified revenue and cost control, positions the hotel as a sustainable investment in the growing Caribbean tourism market.
Risk Analysis
1. Identification of Potential Risks
The project faces risks in five key categories:
2. Mitigation Strategies
1. Environmental Risks
2. Operational Risks
3. Financial Risks
2. Mitigation Strategies (Cont.)
4. Market Risks
5. Legal Risks
3. Contingency Plan
Critical Scenarios and Responses
Crisis Communication
- Internal: Use of Revinate CRM platform for real-time alerts to employees.
- External: Pre-approved protocols for social media and media, coordinated by specialized external agency.
Drills and Updates
- Quarterly exercises: Evacuation drills and response to cyber attacks.
- Annual plan review: Incorporation of lessons learned and new regulations.
This analysis ensures that the hotel operates with resilience in the face of unforeseen events, maintaining its position as a leader in sustainable luxury in the Caribbean. The strategies prioritize proactive prevention, aligning with international standards and industry best practices.
Implementation Timeline
The hotel development will be structured in 5 key phases, with a total estimated duration of 34 months.
1
1. Planning and Design (Q1-Q3 2027)
Completion of environmental and financial feasibility studies
- Approval of design by BIG Architects
- Signing of partnerships with TC Reef Fund and Tesla
2
2. Permits and Licenses (Q4 2027-Q1 2028)
Obtaining construction permits and certifications
- Permits from Turks and Caicos Planning Department
- Preliminary EarthCheck certification
3
3. Construction (Q2 2027-Q4 2028)
- Structure: Foundation and main structure
- Systems: Solar panels and water treatment
- Finishes: Interior design and landscaping
4
4. Equipping and Staffing (Q1-Q3 2028)
- Installation of Nexus technology in rooms
- Training of 150 employees with Turks and Caicos Hospitality Institute
5
5. Pre-opening and Launch (Q4 2028)
- Soft opening campaign with influencers (October)
- Grand opening event with 500 VIP guests (December)
2. Target Dates
3. Critical Milestones and Deliverables
4. Schedule Risk Management
- Time Buffer: 3 additional months distributed in critical phases (e.g. permits and construction).
- Delay Protocol: Activation of clauses with contractors for triple shift work (+30% costs).
- Monitoring: Use of Microsoft Project software with weekly updates to the steering committee.
This schedule ensures efficient execution, aligned with the opening objectives in December 2027, coinciding with the high tourist season. The phased structure prioritizes the early acquisition of certifications and partnerships, key to positioning as the leading sustainable luxury in the Caribbean.
Conclusions
1. Summary of the Opportunity
The project represents a strategic opportunity in a booming Caribbean tourism market, with:
- Sustained growth: 1.5 million visitors in 2023 and a projected 24% increase in air arrivals by 2025.
- Unmet demand: Only 12% of local hotels meet certified eco-friendly standards, creating a niche for "regenerative luxury".
- Attractive profitability: Projected annual revenues of $80M-$100M and a 10-12 year ROI, supported by a 25-30% EBITDA margin.
2. Key Success Factors
3. Next Steps
1
Completion of Permits and Certifications (Q1-Q3 2026)
Obtaining the environmental license for Q1 2027 and final approval of the bioclimatic design by BIG Architects in Q3 2026.
2
Resource Mobilization (Q4 2026)
Signing of strategic contracts with Tesla (transportation), Nexus Systems (technology), and Caicos Pride Farms (food). Start of the recruitment of 150 local employees in collaboration with the Turks and Caicos Hospitality Institute.
3
Execution of the Schedule (April 2027 - Q3 2028)
Start of construction in April 2027, with the goal of delivering 50% of the rooms by Q3 2028. Preparation of the soft opening campaign with influencers and international media for October 2028.
4
Commercial Launch (Q4 2028)
Activation of exclusive packages with Amex Platinum and JetBlue Vacations. Launch of the "Eco-Guest" loyalty program with rewards for sustainable actions.
Final Conclusion
This hotel not only capitalizes on the growth of premium tourism in the Caribbean, but also sets a new standard in responsible luxury, combining technological innovation, environmental conservation, and profitability. With an initial investment of $129.2M and a robust risk mitigation plan, the project positions itself as a strategic bet for investors seeking social, environmental, and financial impact.
Next Phase: Presentation of the plan to financial institutions to secure the $90.4M credit and signing of agreements with international tourism operators.
