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Spanish hotel group Melia has decided to stop managing, marketing and providing brand services for 15 hotels in Cuba, citing worsening economic, legal and geopolitical conditions on the island. The company, which has operated in Cuba since 1990, said the decision was driven by factors beyond its control that affected the viability and safety of continuing operations. The move comes as the United States increases pressure on Cuba through stricter sanctions and other measures. Melia noted that most of the affected hotels were already closed or inactive as Cuba's tourism sector continues to face significant challenges.
Spanish hotel operator Melia has announced its immediate withdrawal from the management, marketing and branding of 15 hotels in Cuba, citing deteriorating economic, legal and geopolitical conditions that have made continued operations increasingly difficult.
The company stated that it had informed the owners of the affected hotels about its decision during the past week, with the withdrawal being formally confirmed subsequently. The hotels were operated through Melia's Portuguese subsidiary, Ilha Bela Gestao E Turismo.
According to a regulatory filing, the company said the decision was the result of a combination of unforeseen circumstances beyond the subsidiary's control. These factors had significantly affected the viability, legality and operational safety of maintaining its presence at the properties.
The move comes at a time when Cuba is facing mounting economic pressures and a challenging tourism environment. The administration of U.S. President Donald Trump has intensified measures against Cuba, including tighter sanctions and restrictions aimed at limiting financial resources flowing into the country.
Melia has been one of the largest international hotel operators in Cuba and has maintained a presence on the island for more than three decades. Since entering the Cuban market in 1990, the company has played a significant role in the country's tourism sector, operating a large portfolio of resort and hotel properties.
Despite Cuba remaining one of Melia's largest markets in terms of hotel count, the island's contribution to the company's earnings has weakened considerably in recent years. The country's tourism industry has struggled with recurring power outages, infrastructure challenges and a decline in visitor arrivals, affecting hotel occupancy and operational performance.
The company noted that most of the 15 hotels affected by the decision were already closed or inactive, reflecting the broader difficulties facing the sector. Cuba's tourism recovery has lagged behind several Caribbean destinations, with international arrivals remaining below pre-pandemic levels.
Melia said Ilha Bela is undertaking an orderly exit process from the properties. The subsidiary is also implementing measures to keep customers, suppliers and other stakeholders informed as the transition progresses.
Source Reuters
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