KPMG’s sixth annual Caribbean Region Financing Survey

KPMG’s regional advisory practice is pleased to bring you KPMG’s sixth annual Caribbean Region Financing Survey, focusing on lending trends in the hospitality and tourism sector in the Caribbean.

This year for the first time, in addition to speaking with leading regional lenders as they have before, KPMG included development banks in the survey to capture the emergence of a potential new source of financing in the sector. Key findings include:

- A refinancing bubble is around the corner as hotels already struggle after two years of poor performance.
- Projects being financed will be smaller/phased, not so high end, well capitalized with sound fundamental and experienced backers.
- Failed, half-built projects will continue to find it very hard to refinance.
- More rigorous financial modeling and forecasts and more detailed due-diligence will become the norm.

A number of projects have either stalled or failed in the region and in the view of lenders, the primary cause for failure has been unrealistic projections or forecasting. Other reasons cited included, lack of cash equity, poor cost control and a lack of strong management and financial control.

Please click here to view a copy of the report.

For further information about the survey or to request a hardcopy please contact Tully Cornick on +1 345 949 4800.