A major Spanish hospitality company announced Wednesday it will cease all management and branding operations for 15 hotels in Cuba, citing deteriorating political, legal and economic circumstances on the island.
The decision by Melia comes amid increased pressure from the current U.S. administration on Cuba, including oil restrictions and enhanced sanctions designed to limit resources and push for governmental changes.
The hotel operator, which ranks among Cuba’s biggest foreign hospitality companies, has maintained operations on the island for over three decades since 1990. Company officials revealed they notified property owners of this decision on May 26, with formal confirmation released Wednesday. Operations were conducted through their Portuguese division, Ilha Bela Gestao E Turismo.
According to company regulatory documents, the withdrawal resulted from “a combination of unforeseen circumstances” outside Ilha Bela’s control that severely impacted the feasibility, legality and security of continued operations.
While Cuba represents one of Melia’s biggest markets in terms of property count, its financial returns to the parent company have declined dramatically as the island’s hospitality industry struggles with electrical grid problems and decreased visitor numbers. Company officials noted that most affected properties were already shuttered or dormant.
Ilha Bela is currently coordinating a systematic exit from these properties while implementing protocols to maintain communication with vendors and guests, according to the announcement.
