This is a list of hotels in the Caribbean. The Caribbean is a region that consists of the Caribbean Sea, its islands (some surrounded by the Caribbean Sea and some bordering both the Caribbean Sea and the North Atlantic Ocean), and the surrounding coasts. The region is southeast of the Gulf of Mexico and the North American mainland, east of Central America, and north of South America.
The Caribbean region is surrounded by the Caribbean Sea.
The context states that the Caribbean region is surrounded by both the Caribbean Sea and the North Atlantic Ocean. I think that the system had an issue with this statement because it didn't recognize that some islands in the Caribbean region were also surrounded by the North Atlantic Ocean.