After passing through the Leeward Islands on January 2, 1955, Alice reached peak winds of 90 mph (140 km/h) before encountering cold air and turning to the southeast.

A cold front moved southeastward from the East Coast of the United States on December 23, 1954, and passed over Bermuda two days later.

Atmospheric conditions were unusually favorable for the time of the year due to the ridge of high pressure preventing cold air from reaching the central Atlantic Ocean.

There were few direct observations for the following days, but it is estimated the storm intensified into a hurricane on December 31 while located about 475 miles (764 km) east-northeast of Barbuda.

On January 1, 1955, a ship within 10 miles (16 km) of the center reported hurricane-force winds and a pressure of 987 mbar (29.15 inHg).

Based on near-hurricane-force winds from the affected islands, an information bulletin named the system as Hurricane Alice while in the northeastern Caribbean Sea.

[1] Reconnaissance aircraft flew into Hurricane Alice on January 3 and confirmed the existence of the tropical cyclone by reporting winds between 60 and 65 mph (97 and 105 km/h) and a warm core center.

It is estimated Alice continued to intensify as it tracked southwestward in the Caribbean Sea, and attained peak winds of 80 mph (130 km/h) while located about 95 miles (153 km) west-northwest of Montserrat.

Weather Bureau Office in San Juan, Puerto Rico warned the islands of the northern Lesser Antilles to prepare for strong winds and rough seas.

[2] The hurricane dropped moderate to heavy rainfall across several islands, including a peak of 11.27 inches (286 mm) in 48 hours recorded at Saba.

[1] Additionally, the outer rainbands of the storm alleviated dry conditions on Puerto Rico which had persisted since the previous October.