Sagicor X Fund leans on World Cup travel outlook as US hotel bookings lag

Sagicor Real Estate X Fund Limited is pointing to sector forecasts that anticipate stronger travel tied to the FIFA World Cup, a trend it says could lift its hotel holdings even as reservation levels in several United States host markets remain weaker than planners had hoped.

"The US tourism industry is expected to recover for the remainder of 2026, with international travel anticipated to grow," the firm said in its quarterly financial report, noting that expansion is forecast in a range of 3.7 per cent to 10.2 per cent. That turnaround, the X Fund document added, is "contingent on a rebound of in-bound travel and World Cup-related activities".

In its forward view, the fund also drew on figures from the US Travel Association, which foresee hotel demand rising 2.9 per cent compared with 2025 on the back of gains in both domestic and overseas visitor traffic.

The investment vehicle, whose properties span the United States, the Cayman Islands and Jamaica, reported shareholder net profit of $391.5 million for the three months ended March 2026. That result was down a modest $11 million from the opening quarter of the prior year.

Its flagship holding, the DoubleTree by Hilton in Orlando, Florida, delivered a 42 per cent jump in net profit versus the year-earlier quarter, helped by stronger occupancy and lower operating costs. Orlando lies outside the group of 11 American cities that will stage World Cup fixtures, yet management believes the property could still capture spillover from wider summer holiday travel. Miami, a tournament host market roughly two hours south, has seen bookings roughly 40 per cent under forecast — one of the narrowest gaps among host locations in an American Hotel and Lodging Association (AHLA) poll. Kansas City registered the steepest miss, with reservations tracking about 80 per cent beneath projections.

The AHLA speaks for roughly 30,000 hotel operators and ranks as the largest lodging association in the United States. It cautioned that expected visitor interest "has not translated into strong hotel bookings", with about two-thirds of those surveyed blaming visa hurdles, wider geopolitical unease and unfavourable views of the Trump Administration’s approach to immigration enforcement.

"With just two months until kickoff, indicators suggest the anticipated economic lift may fall short of expectations. Despite more than five million tickets sold, this demand has not yet translated into strong hotel bookings," the AHLA report stated.

Outside the American market, X Fund’s commercial property arm in the Cayman Islands continues to see robust demand for retail units, with occupancy running at roughly 90 per cent to 95 per cent. Exposure to Jamaica accounts for only about 1.0 per cent of the portfolio, held mainly through its Sigma Real Estate Portfolio stake.

Sagicor’s outlook also carried warnings. Inflation, borrowing costs and fuel prices "may dampen travel demand", it said, while still arguing the sector should stay durable, "supported by growing demand for leisure, entertainment and recreational activities".

On the balance sheet, total assets reached $30.5 billion as at March 2026, an increase of $410.6 million from December 2025. Cash and cash equivalents climbed to $5.0 billion from roughly $3.0 billion in the comparable period, and stockholders' equity advanced to $23.9 billion.