Hotel Chains Exit Cuba Amid Operational Woes and Sanctions

Spanish hotel group Barceló is pulling out of Cuba, joining Meliá Hotels International and Iberostar Hotels & Resorts in ending operations on the island. Barceló managed two hotels owned by the state-run Gran Caribe group. Meliá and Iberostar had previously announced their departures.

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The decision is a response to persistent operational, legal, economic, and financial difficulties that prevent even minimal business stability.

Meliá Hotels International explained its decision stems from persistent operational, legal, economic, and financial challenges that prevent stable business. The company is managing an orderly withdrawal, aiming to minimize impacts on employees, clients, suppliers, and local partners. Iberostar confirmed it no longer operates or sells stays at Cuban hotels. Meliá's Portuguese subsidiary will cease hotel management and marketing services on July 24.

These withdrawals are linked to U.S. sanctions and a broader crisis in Cuban tourism. The U.S. administration issued an ultimatum to foreign companies operating with entities linked to the military conglomerate GAESA, which owns Gaviota. In mid-July, the U.S. expanded sanctions to include Cuba's Ministry of Tourism, which owns hotel groups like Cubanacán, Gran Caribe, and Islazul.

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The company is conducting an orderly withdrawal process, seeking to limit its impact on employees, customers, suppliers, and local partners, while analyzing the financial consequences of this decision.

Cuban tourism is in sharp decline, with a 55.8% drop in foreign visitors from January to April 2026 compared to the previous year. Meliá noted that the crisis extends beyond reduced demand, affecting the business environment and increasing regulatory pressure.

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The company thanked all individuals and institutions that collaborated with it in Cuba, emphasizing its respect for the country.