Iberostar withdraws from managing 12 military-connected hotels in Cuba: report

Spanish hotel operator Iberostar has ended its partnership with Gaviota, the tourism company controlled by Cuba’s military-run Grupo de Administración Empresarial S.A. (Gaesa), according to local reports.

The move relinquishes management of 12 hotels linked to that entity.

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.

The move 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 Donald Trump on May 1, 2026.

READ MORE: Blue Diamond Resorts to exit Cuba

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 Monday (June 1), 14ymedio confirmed that several former Iberostar-managed hotels owned by Gaesa remain open and are now being operated directly by Gaviota, mirroring the transition that followed Canada's Blue Diamond Resorts (now known as Royalton International) over the weekend.

Staff at the Grand Packard hotel in Havana reportedly told the outlet that: “If you try to book an Iberostar hotel in Havana through travel agencies, the one that will appear is Parque Central, which is still managed by that company. To book with us, you have to do so directly here or through Gaviota.”

Meanwhile, representatives at the Parque Central hotel – owned by Cubanacán – confirmed with the outlet that “Iberostar executives are working here today without any problem, and the company remains active at this hotel.”

Iberostar Cuba has not publicly confirmed the decision nor issued an official statement. PAX has reached out to the company for comment.

12 hotels impacted

Iberostar’s move, however, was communicated through the Argentina-based tour operator Sudameria, which stated that the company would stop managing and promoting a number of hotels in Cuba effective June 1, 2026.

Sudameria is the same company that first revealed Blue Diamond’s departure from Cuba on Saturday.

In its statement, the wholesaler said that, “as part of a process of adaptation to the international regulatory environment,” and in order to preserve its standards of quality, compliance, and management, Iberostar Cuba Hotels & Resorts “will cease operating and marketing a group of hotels in Cuba as of June 1, 2026.”

The company notes that the measure ends any commercial, operational, or branding relationship between Iberostar Cuba and the hotels affected by the decision.

The twelve hotels affected by Iberostar’s withdrawal – all owned by entities tied to Gaesa— are the following:

• Iberostar Grand Packard
• Iberostar Selection Ensenachos
• Iberostar Selection Holguín
• Iberostar Coral Holguín
• Iberostar Selection Esmeralda
• Iberostar Coral Esmeralda
• Iberostar Coral Ensenachos
• Iberostar Selection La Habana
• Iberostar Origin Bella Vista Varadero
• Iberostar Origin Laguna Azul
• Iberostar Origin Playa Pilar
• Iberostar Origin Playa Alameda

“Beginning June 1, 2026, these establishments will no longer be managed, marketed, or promoted under the Iberostar brand,” the statement reads. 

Meliá faces pressure

Meanwhile, Spanish hotelier Meliá, which manages between 32 and 35 properties in Cuba, is facing mounting pressure to clarify its plans as the deadline set by the U.S. State Department approaches and the threat of sanctions looms.

Meliá Hotels International, 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 manages 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.

In its report, Meliá notes that "this situation has created an unexpected difficulty in obtaining fuel which, along with the imposition of a strict trade blockade, has greatly affected the tourism market," and that "the lack of aviation fuel led to the cancellation of numerous direct flights to the country, including from its main source market, Canada."

Pressing pause

Canada’s Sunwing Vacations Group – and other companies, such as Air Canada and Air Transat – have temporarily suspended flights and vacation packages to Cuba.

On April 15, following fuel shortages in Cuba and the cancellation of all flights from Canada, Sunwing, under the WestJet Group, announced the suspension of all its Cuba vacation packages for the summer 2026 season. The measure affected operations from all Canadian airports to Varadero and Cayo Coco between June 20 and October 9.

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).

Canada is Cuba’s largest tourism market. According to Cuban statistics, roughly 754,000 Canadians visited the island in 2025, representing a 12.4 per cent decrease from the previous year.

The downturn has intensified in 2026, with international arrivals dropping 55.8 per cent between January and April compared with the same period in 2025.

Ongoing power shortages, frequent blackouts, supply constraints, and reduced flight connectivity have prompted many hotel operators to either shut down properties or consolidate guests into a smaller number of hotels.

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