Renovations boost Grand Palladium Resorts’ revenue
GRAND Palladium Jamaica Resort & Spa, along with its counterpart, Grand Palladium Lady Hamilton Resort & Spa Hotel, have experienced a remarkable 15 per cent increase in revenues for its local market after completing a comprehensive two-year renovation.
“For the local market, we saw an increase in our ADR [average daily rate] and revenue from the local market. Travel this year was very different; it was not what we’re used to,” said Merricka Dyer Cunningham, sales manager at Grand Palladium, as she shared insights into the positive outcomes with the Jamaica Observer.
Cunningham noted a shift in travel patterns with visitors coming in throughout the year instead of adhering to the typical seasonal influx. She cautiously acknowledged the impact on their 2024 budget, recognising the need to adapt to evolving travel behaviours post-COVID.
While observing that there was also a significant increase in the Canadian market, Cunningham was unable to confidently give figures but said it impacted the revenues of the hotel as well. For the local market, she attributed the surge to the extensive renovations, emphasising that the renovations went beyond physical changes, encompassing improvements in service, cuisine, and the overall guest experience.
“People recognise that there’s work being done to the property, not just physical renovations but also in the people and the food,” said Cunningham.
She highlighted the discerning nature of Jamaican travellers, emphasising that once they recognise positive changes, they are likely to take advantage of them. Contrary to the expectation that increased revenues would be driven by lower prices, Cunningham noted that locals paid more to book this year. However, the hotel observed longer guest stays, coupled with a reduction in the number of guests, contributing significantly to the revenue boost.
The 15-year-old hotel, having faced wear and tear, underwent renovations from May 2022 to November 2022, costing US$27 million. The Jamaica property witnessed room redecoration, the addition of 48 swim-out pools on the ground floor, and renovations to its infinity pools. The full reopening of the Jamaica property took place in December 2022, along with its MoBay restaurant, which also underwent refurbishment. The Lady Hamilton lobby also underwent renovations to complement the renovation of the Jamaica lobby, which recently opened in November 2023 and took six weeks to complete. Looking ahead to 2024, the focus will be on the local market, with plans to attract more groups, corporate events, and local weddings.
“For 2024, I would love for us to maintain that 15 per cent increase, because that also has to take into consideration that the rates will increase as well,” Cunningham expressed to the Business Observer.
She also mentioned ongoing refurbishments for the Lady Hamilton property, with 48 sought-after romance villas scheduled for further improvements.
“It’s a continued process,” said Cunningham. “We did about eight the other day, and we’re looking at continuing that into next year.”