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Spanish chain cuts ties with facilities linked to military holding Gaesa

Lara Carter RUSSPAIN.com

Post by Lara Carter

Spanish chain cuts ties with facilities linked to military holding Gaesa RUSSPAIN.com © russpain.com
Spanish chain cuts ties with facilities linked to military holding Gaesa © russpain.com

Meliá Leaves 15 Hotels in Cuba Amid US Pressure. Meliá Hotels International has announced the immediate termination of management for 15 hotels in Cuba. The decision is linked to US sanctions against properties controlled by the military holding company Gaesa. The company will continue operating only those hotels not affected by the restrictions.

The Spanish hotel chain Meliá Hotels International has officially ceased management and commercialization of 15 hotels in Cuba associated with the state military holding Gaesa. The decision took effect immediately after notification to the National Securities Market Commission (CNMV) and was made in response to a tough ultimatum from the United States: foreign companies had to exit projects linked to Gaesa by June 5 to avoid economic sanctions.

The list of properties closed to Meliá includes well-known hotels such as Gran Hotel Bristol Habana Vieja Member of The Meliá Collection, Innside Catedral Habana, Meliá Buena Vista, Meliá Cayo Santa María, Meliá Jardines del Rey, Meliá Las Dunas, Meliá Península Varadero, Paradisus Los Cayos, Paradisus Princesa Mar, Paradisus Río de Oro, Paradisus Varadero, Sol Caribe Beach, Sol Cayo Santa María, Sol Río de Luna y Mares, and Sol Varadero Beach. Prior to this, Meliá managed 34 hotels in Cuba; now, it will be left with only 19, which, according to the company, belong to structures associated with the country's Ministry of Tourism.

The company emphasized that the decision was made due to "extraordinary circumstances beyond management’s control" that seriously complicated operations, legal security, and the ability to provide services at previous levels. Official notification of the termination of collaboration was sent to hotel owners back on May 26. The Meliá management explains its move as a matter of business responsibility and the need to comply with international requirements.

The situation in Cuba for foreign hotel operators has noticeably worsened in recent months. In its latest reports, Meliá noted problems with fuel supplies and the consequences of the US trade embargo, which led to the gradual closure of some facilities and a reduction in occupancy to 50% of capacity. Now, after Meliá's departure, Iberostar has made a similar decision, having just announced the closure of 12 out of its 18 hotels in Cuba.

Experts note that the tightening of US sanctions against Gaesa has become a key factor for European hotel chains operating in Cuba. By comparison, in Spain, new rules and fines for businesses are also becoming increasingly strict: for example, major fines for restaurants and cafes violating food waste regulations have recently come into force. More details can be found in the article about the new requirements for food service establishments.

Meliá's decision could shift the balance of power in Cuba's tourism market and increase pressure on other foreign companies working with state-run entities on the island. In the near future, other players are also expected to review their strategies in the region.

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