SAGICOR Real Estate X Fund Limited (XFUND) is preparing to spend US$21.3 million ($3.34 billion) upgrading its flagship DoubleTree by Hilton hotel in Orlando as the company bets stronger conference and tourism demand can offset growing global uncertainty.

“We expect the renovations at the hotel, DoubleTree in Orlando, to continue to drive performance in future years. While demand remains strong for transient business, we are placing particular focus on attracting groups and conference business because this business drives higher revenue across all areas of the hotel,” said XFUND Chief Executive Officer (CEO) Brenda Lee-Martin at the company’s 13th annual general meeting (AGM) held on Wednesday.

This is the first major renovation being done to the Orlando, Florida, property since 2017/2018. The upgrade is expected to support higher average daily room rates at the 742-room property, which includes 70,000 square feet of meeting space targeting the meetings, incentives, conferences and exhibitions (MICE) market. However, the renovation timeline has now been pushed into 2028 as global supply disruptions and procurement challenges complicate the project.

“The timeline is now 2028. We received an extension from Hilton and there are some challenges with getting items for the renovation given all that is happening globally,” Martin responded to shareholders at the Sagicor Auditorium in New Kingston.

Asked whether higher travel costs and geopolitical instability could affect tourism demand, Chairman Howard Mitchell explained, “The fact is that there is a lot of global uncertainty, and we can’t predict with particularity exactly which way the ball will roll. What we do know is that the majority of visitors to that area are domestic travellers.”

He added, “So where people can’t travel abroad, the tendency would be to travel to attractions. The marketing that’s taking place now within US tourism is to direct US residents to US attractions. I think that tendency will balance out the volatilities that you speak of in the global market.”

Mitchell’s comments also come as the United States prepares to host matches during the FIFA World Cup beginning June 11. Although Orlando won’t host any games, Miami will host seven matches. Lee-Martin said Aimbridge Hospitality LLC, which manages the DTO property and other Florida hotels, expects increased international travel tied to the World Cup to spill over into nearby markets.

“When we look at the forward bookings and we compare it to last year, in a lot of instances, we’re ahead of where we were last year. The forward bookings are looking strong six months out,” stated Lee-Martin on the outlook for the DTO property.

XFUND acquired the Orlando property in 2015 for US$75 million as part of its hospitality expansion strategy. The hotel generated $7.64 billion, or 90 per cent, of the company’s revenue in 2025 and contributed 73 per cent of consolidated pre-tax profit. Lower finance costs and higher rates resulted in the property generating $659.42 million in net profit in 2025.

XFUND is planning to split one of six units into three smaller units at The Strand Shopping Centre in the Cayman Islands. This commercial property brought in $87.23 million in net revenue during 2025 and is the company’s first investment outside of Jamaica and the USA.

While the XFUND CEO highlighted a pipeline of opportunities, the company has yet to make any new property acquisitions since September 2024. The company’s debt to equity ratio was cut from 46 per cent to 27 per cent in 2025 after paying down some of its debt.

“We would be looking at both at what we can fund from cash resources that we have as well as looking at whether we need to borrow to fund any of these investments,” Lee-Martin explained.

XFUND will also resume dividend payments for the first time in nine years with a $0.10 payout scheduled for July 14. Shareholders on record as of June 23 are eligible to receive the payment.