Sagicor X Fund cites World Cup travel projections amid broader US booking shortfall

Sagicor Real Estate X Fund Limited has cited industry projections that point to World Cup-related travel growth, which could benefit its hotel portfolio even as bookings across US host cities are running below expectations.

"The US tourism industry is expected to recover for the remainder of 2026, with international travel anticipated to grow," the company said in its quarterly financial report, adding that growth is projected at between 3.7 per cent and 10.2 per cent. That recovery is "contingent on a rebound of in-bound travel and World Cup-related activities", the X Fund report stated. 

In its outlook, X Fund also referenced projections from the US Travel Association pointing to a 2.9 per cent increase in hotel demand over 2025, supported by growth in both domestic and international travel.  

The group, which holds assets across the United States, the Cayman Islands and Jamaica, posted shareholder net profit of $391.5 million for the first quarter ended March 2026, a marginal $11 million decline from the same period last year.

X Fund's core asset, the DoubleTree by Hilton in Orlando, Florida, recorded a 42 per cent increase in net profit over the corresponding period, supported by higher occupancy and a reduction in operating expenses. While Orlando is not among the 11 US cities hosting World Cup matches, the company could benefit from broader summer leisure travel patterns. Nearby Miami, which will host World Cup games, recorded bookings running 40 per cent below expectations — among the smallest gaps reported across host cities, according to an American Hotel and Lodging Association (AHLA) survey. Kansas City posted the largest shortfall, with bookings tracking 80 per cent below projections. The AHLA represents some 30,000 hoteliers, making it the largest hotel group in the USA. It warned that anticipated demand "has not translated into strong hotel bookings", with about two-thirds of respondents citing visa barriers, broader geopolitical concerns, and the negative perception of the Trump Administration’s stance on 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. 

Beyond the US, X Fund's commercial real estate segment operates in the Cayman Islands, where retail space occupancy remains strong at approximately 90 per cent to 95 per cent. Its Jamaican exposure is limited to approximately 1.0 per cent of the portfolio through its Sigma Real Estate Portfolio holding.

Sagicor, in its outlook, flagged caveats, noting that inflation, interest rates, and fuel prices "may dampen travel demand", but said it expects the sector to remain resilient, "supported by growing demand for leisure, entertainment and recreational activities".

Total assets stood at $30.5 billion at March 2026, up $410.6 million from December 2025. Cash and cash equivalents grew to $5.0 billion from roughly $3.0 billion in the comparable period. Stockholders' equity rose to $23.9 billion. 

business@gleanerjm.com