Meliá exits Cuba over economic & geopolitical strains

This story was updated on Wednesday, June 3 at 10:26 a.m. EST

Spanish hotel company Meliá Hotels International announced Wednesday (June 3) that it will immediately end its management, marketing, and branding agreements for 15 hotels in Cuba, citing the country's increasingly difficult geopolitical environment as well as legal and economic challenges.

The decision follows a renewed U.S. campaign against Cuba under President Donald Trump.

The administration has intensified sanctions and restrictions on the island, including measures targeting oil supplies, with the goal of limiting the Cuban government's access to resources and increasing pressure for political change.

The 15 impacted hotels are:

• 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
• Sol Varadero Beach

Meliá, one of the biggest international hotel operators in Cuba, has maintained a significant presence on the island since 1990.

As reported by Reuters, the company said it notified hotel owners of its plans to end its involvement on May 26, with the decision formally confirmed on Wednesday.

The affected properties were managed through its Portuguese subsidiary, Ilha Bela Gestão e Turismo.

In a regulatory statement, obtained by Reuters, Meliá said the exit was prompted by "a combination of unforeseen circumstances" beyond Ilha Bela's control that had significantly affected the viability, legality and safety of continuing operations.

Although Cuba remains one of Meliá's largest markets in terms of hotel count, the destination has become less important financially as ongoing power outages and weaker visitor demand have weighed heavily on the country's tourism industry.

The company added that most of the affected hotels were already closed or no longer operating.

Meliá, sharing its Q1 results earlier last month, concluded the first quarter of 2026 with only half of its hotel capacity operational on the island.

The company, which once managed 34 properties comprising more than 5,000 rooms across Cuba, stated in its report that the current conditions have resulted in a dramatic decline in its operations on the island.

The company attributed the collapse to the energy crisis triggered by sanctions brought on by the United States.

Foreign hoteliers exit

The move follows in the footsteps of other foreign hoteliers who have exited Cuba in recent days.

As previously reported, Canada’s Blue Diamond Resorts, a major foreign player in Cuba’s tourism industry for the past decade, announced the immediate termination of its operations on the island.

According to reports, the properties it managed will now be administered by Gaviota, a company that forms part of Grupo de Administración Empresarial S.A. (GAESA), the Cuban military conglomerate controlled by the armed forces.

The move will impact brands such as Blue Diamond Resorts Cuba, Blue Diamond Cuba, Royalton, Memories, Starfish, Mystique, and Resonance.

Spanish hotel operator Iberostar has also ended its partnership with Gaviota, relinquishing the management of 12 hotels linked to that entity.

It appears that Iberostar will, however, continue operating in Cuba through hotels partnered with other state tourism groups that are not affiliated with the military conglomerate, including Cubanacan and Gran Caribe, reports Cuban media outlet 14ymedio.

Another global chain to leave Cuba is Asia-based Archipelago International, which managed the Grand Aston Havana, Grand Aston Varadero, Grand Aston Cayo Paredon, Grand Aston Cayo Las Brujas and Aston Costa Verde. 

As reported by Cuban news outlet 14ymedio, these properties may remain open, but will now be managed by Gaviota.

The activity comes days before a June 5 deadline established by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) under an executive order signed by President Trump on May 1, 2026.

The order directed sanctions against individuals and entities deemed responsible for repression in Cuba or for posing threats to U.S. national security and foreign policy.

Companies were given until June 5 to cease dealings with the sanctioned entities or face potential penalties.

On Tuesday, PAX reached out to the Cuba Tourist Board for a comment about the hotel situation but did not hear back. 

Supply chain concerns

Travel advisor Brenda Slater of Beyond the Beach took to social media earlier this week to sound off on the hotel situation in Cuba, sharing concerns about the island’s supply chain, calling the whole situation “sad.”

“Once the management teams leave, the supply chain will also end,” Slater told PAX. “If you have ever stayed at a Cuban-managed resort, you’d know that even local rum is scarce, as is any mix, other than locally-grown fruit juice.”

Two years ago, Slater stayed at a hotel near Havana, and staples like bread, butter, lettuce and eggs “were extremely limited.”

“Even back then, when the ‘good stuff’ came in, it was gone in an instant,” Slater said. “No matter what happens, we know that the Cuban people are struggling. There may be food on the shelves in the shops, but the locals are unable to afford it.”

Anyone who has a friend or family member in Cuba, and would like to place a grocery order for them, can do so at supermarket23.com, Slater said.

Canada presses pause

Amid fuel shortages and geopolitics tensions, Canadian airlines and tour operators have temporarily suspended flights and vacation packages to Cuba.

In a statement to PAX on Tuesday (June 2), Sunwing Vacations Group, which has suspended its Cuba packages until at least October, said it is “closely monitoring the situation.”

“As more information becomes available, we will assess any potential impacts to our future programming and remain committed to keeping our travel advisor partners and industry stakeholders informed of any relevant updates,” the company said.

At least 11 airlines have suspended flights to Cuba in 2026 — including Air Canada, WestJet, Air Transat, LATAM Perú, Magnicharters, Air France, Iberia, Rossiya, Nordwind, and Turkish Airlines – with more than 1,700 flights cancelled in total.

The Government of Canada is currently warning citizens against all non-essential travel to Cuba, pointing to deepening shortages of fuel, electricity, food, water, and medicine.

Still, some tour operators, such as Enjoy Travel Group and Hola Sun Holidays, have continued to promote the destination.

Hola Sun’s main connections to Cuba currently include flights via the United States (American Airlines, Southwest, and Delta Air Lines), Mexico City and Cancun (Aeroméxico, Viva Aerobus, and Magnicharter) and Panama (Copa Airlines).

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