Meliá to officially end operations in Cuba on July 24

Meliá Hotels International will officially end all of its operations in Cuba on July 24, citing persistent operational, legal and financial challenges that have made it increasingly difficult to do business on the island.

The move marks the company's complete withdrawal from Cuba after it began scaling back its presence in June by ending management agreements with the state-owned Gaviota tourism group.

That decision came as several hoteliers operating in Cuba, such as Iberostar, Archipelago International and Canada’s Blue Diamond Resorts, reassessed their ties to the country amid growing pressure from the United States.

In a filing with Spain's National Securities Market Commission (CNMV), Meliá said its Portuguese subsidiary, Ilha Bela Gestão e Turismo, which manages the company's Cuban operations, will cease providing services at all remaining hotels in the country effective July 24.

The company attributed the decision to ongoing operational difficulties that have worsened under U.S. sanctions, saying the current environment no longer allows for even a minimum level of operational stability.

Meliá's exit also includes ending the use of its hotel brands in Cuba, winding down tourism-related services and discontinuing local supply chain operations supporting its properties.

The hotel group said it is now assessing the financial impact of its withdrawal, including whether it will need to write down the value of its Cuban operations.

More details are expected when the company releases its first-half financial results.

The announcement follows earlier signs of Meliá's retreat. During its first-quarter earnings report on May 7, the company said it had already reduced its operational capacity in Cuba by roughly 50 per cent due to the effects of U.S. sanctions.

At the time, Meliá's Cuban portfolio included 34 hotels with more than 14,000 rooms, although several properties had already been closed.

The company had also planned to open two additional hotels this year, but those projects are now expected to be shelved.

As previously reported, WestJet, Air Canada and Air Transat, inclusive of tour operators such as Sunwing, Air Canada Vacations and Transat, have all suspended their Cuba operations until further notice.

Global Affairs Canada also continues to advise against non-essential travel to Cuba.

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