Meliá to Close 15 Cuban Properties, Further Striking Island’s Struggling Tourism Industry

HAVANA (AP) — Spanish hospitality giant Meliá is adding to a growing roster of established firms reducing or exiting their operations in Cuba, following the U.S. imposition of new sanctions alongside the continued oil embargo. According to the state-run news outlet Cubadebate, Meliá will shut down 15 of the 34 hotels it currently manages on the island. This move deals another significant setback to Cuba’s critical tourism sector, which has seen a steep decline since reaching its zenith in 2018.

In a report released Wednesday, the state website indicated that Meliá’s choice to withdraw was driven by “a sense of corporate responsibility and external factors that have significantly affected the operation, legality and security of these establishments.” The announcement came on May 26, mere weeks after U.S. President Donald Trump executed an order broadening sanctions against the Caribbean nation.

The majority of these restrictions targeted Grupo de Administración Empresarial S.A. (GAESA), a business conglomerate controlled by the Cuban Revolutionary Armed Forces. Washington has classified the entity as a threat to its national security. Under the executive order, assets of foreign companies linked to the designated group are frozen, their U.S. accounts are seized, and travel for their shareholders, investors, and employees is banned—effectively barring them from the American financial system.

Meliá did not immediately return requests for comment.

GAESA, a conglomerate established in the 1990s, manages a diverse portfolio ranging from retail and car rentals to transportation services. It serves as Meliá’s partner in hotel management via its subsidiary, Gaviota. Until its partial exit, Meliá was a cornerstone of Cuba’s tourism infrastructure, operating approximately 14,000 rooms. Lee Schlenker, a research associate at the Quincy Institute’s Global South program, a Washington-based think tank, highlighted that Spanish and Canadian entities remain the largest investors in the nation’s hotel industry.

Schlenker noted that the combination of waning international travel, fuel crises, and the broader economic downturn following the pandemic has prompted companies to reconsider their Cuban presence. “I’m sure that these companies will be rethinking their operations in Cuba with major implications for the people of Cuba, not just GAESA,” Schlenker said. “There are thousands of Cubans who work in these hotels.”

Cubadebate reported that several of the properties Meliá is abandoning—located in popular resort areas such as Varadero, Cayo Santa María, and Jardines del Rey—were already non-operational. The outlet cited energy issues and falling demand as the reasons for their prior inactivity. The Cuban government has attributed prolonged blackouts, water shortages, supply chain disruptions, healthcare deficiencies, and general daily life disturbances to the U.S. energy blockade.

Source: Yahoo News Generated at: 2026-06-03 22:02:19 UTC