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US Sanctions Trigger Major Hotel Exodus from Cuba
3 Jun
Summary
- Meliá Hotels halts operations at 15 Cuban hotels due to US sanctions.
- Iberostar and Blue Diamond also ceased operations impacting many properties.
- Cuban tourism has fallen drastically, with many flights cancelled.
Meliá Hotels International announced on Wednesday, June 3, 2026, the immediate halt of its operations at 15 hotels in Cuba. This decision, communicated through its Portuguese subsidiary Ilha Bela, impacts the management, marketing, and use of its brands on the island. The move comes as a direct response to US sanctions imposed on companies with ties to Gaesa, a military conglomerate controlling a significant portion of the Cuban economy. Meliá was the last major international hotel operator with a substantial presence in Cuba.
Prior to Meliá's announcement, other hotel groups had already withdrawn. Iberostar stopped operating and marketing 12 properties as of June 1, 2026, ending contractual ties with Gaesa's operational arm, Gaviota Tourism Group. Canadian chain Blue Diamond also previously announced its exit from Cuba, where it managed 62 properties. While these companies did not officially cite US pressure, Iberostar mentioned adapting to the international regulatory environment.
The withdrawal of these hotel groups occurs amidst a severe crisis in Cuba's tourism sector. Between January and April 2026, the island received only 328,608 international tourists, a stark 55.8% decrease compared to the same period in 2025. This decline follows historic lows in 2025, with just 1.8 million visitors. The situation is further exacerbated by at least 11 airlines suspending or reducing flights to Cuba in 2026, leading to over 1,700 flight cancellations.
