Cuba loses major foreign hotel chains amid US sanctions

Spanish hotel group Meliá announced it will cease managing 15 hotels in Cuba, citing worsening geopolitical, legal and economic conditions and a US‑imposed oil blockade targeting the military‑run conglomerate Gaesa. Canadian operator Blue Diamond Resorts said it is halting operations at its 62‑hotel portfolio in Cuba, also attributing the move to operational limits and market conditions after the US issued a decree sanctioning companies linked to Gaesa. Spanish chain Iberostar confirmed it will stop operating 12 hotels owned by Gaesa‑controlled Gaviota, with the withdrawal effective 1 June 2026 to avoid US sanctions.

The exits come as Cuba’s tourism sector faces a sharp decline – international arrivals fell 55.8 % in the first four months of 2026 and many hotels are already closed or have very low occupancy. The loss of foreign hotel operators further reduces employment in the sector and coincides with Iberia suspending direct flights to the island. Remaining hotels are being run by non‑Gaesa owners such as Cubanacán and Gran Caribe, but the overall outlook for Cuba’s tourism revenue remains bleak.