Meliá and Iberostar exit Cuba over economic and geopolitical strains

business

Spanish hotel group Meliá announced on Wednesday that it will immediately stop managing, marketing, and providing brand services for 15 hotels in Cuba. The company pointed to the island's worsening geopolitical, legal, and economic conditions, specifically citing hotels linked to the military-run conglomerate GAESA.

The decision comes as the administration of U.S. President Donald Trump steps up pressure on Cuba through an oil blockade and tighter sanctions. Meliá joins a growing list of companies with a long-standing presence on the island that are withdrawing or limiting operations. In a similar move, Iberostar halted operations at 12 hotels on June 1 due to U.S. sanctions on GAESA.

In a regulatory filing, Meliá stated the withdrawal was driven by unforeseen circumstances beyond the control of its Portuguese subsidiary, Ilha Bela Gestao E Turismo. The company noted that these circumstances significantly affected the viability, legality, and safety of continuing operations. Hotel owners were informed of the decision on May 26.

Meliá has maintained a major presence in Cuba since 1990, but the financial contribution from the market has weakened sharply as falling tourism demand and power shortages hit the sector. Most of the affected hotels were already closed or inactive. Ilha Bela is now coordinating an orderly withdrawal and implementing measures to keep customers and suppliers informed.

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