Spanish hotel chain Meliá closes all Cuba hotels citing 'notable difficulties'

Spanish hotel giant Meliá is set to end all its operations in Cuba this Friday, July 24, citing "notable difficulties" that have persistently plagued the island nation. The company's Portuguese subsidiary, Ilha Bela Gestao e Turismo, which managed Meliá's Cuban properties, made the decision to conclude service provision across all establishments.

The withdrawal is a direct consequence of the "notable operational, legal, economic, and financial difficulties" in Cuba, exacerbated by the hardening of the U.S. embargo. Meliá stated these factors make even "minimal operational stability" impossible, both in practice and by law. The cessation of activity extends to the use of Meliá's brands, tourist reception services, and the local supply chains that supported the hotels.

Previously, in May, Meliá had already reduced its Cuban capacity by 50%, closing 14,053 rooms. As the largest foreign hotel operator in Cuba, Meliá did not own the properties; instead, it managed state-owned hotels through entities like Gaesa (linked to the Cuban military), Cubanacan, and the Ministry of Tourism. Meliá provided its brand, reservation systems, marketing, and operational procedures, receiving management fees and performance bonuses. The company noted that its exit would have minimal impact on local employment, as most staff were employed by Cuban state operators, while Spanish management personnel would depart.