Melia Pulls Brands From 15 Cuba Hotels Under US Sanctions Threat

CUBA · BUSINESS

One by one, the big foreign hotel chains are walking away from Cuba. Meliá’s exit from 15 properties, days before a US sanctions deadline, marks one of the heaviest blows yet to an industry that was already collapsing.

Meliá steps back from Cuba hotels

Spain’s Meliá Hotels International told the Spanish securities regulator on June 3 that it would immediately conclude the management, marketing and brand-licensing of 15 hotels in Cuba. The company, through a Portuguese subsidiary, framed the decision around the “geopolitical, social, legal and economic context” on the island and said it was activating plans for an “orderly disaffiliation,” with protocols to inform suppliers and clients.

Meliá is one of the chains with the deepest historical presence in Cuba, so its withdrawal carries outsized weight. The company did not immediately spell out what happens to existing bookings, whether guests will be relocated, refunded or moved to other brands.

The US sanctions deadline driving it

The move comes just ahead of a June 5 deadline set by the US Treasury’s Office of Foreign Assets Control for foreign companies and financial institutions to wind down business with GAESA, the conglomerate controlled by Cuba’s armed forces that dominates the island’s tourism sector. After that date, dealings with GAESA and its subsidiaries could expose firms to secondary sanctions under the Trump administration.

Many of the hotels operated by foreign chains in Cuba sit on properties tied to GAESA’s tourism arm, Gaviota, which is what puts the operators in the sanctions crosshairs. The pressure has forced a rapid recalculation across the sector.

A broader retreat from the island

Meliá is following a path others have already taken. Iberostar announced it was leaving 12 Cuban hotels tied to Gaviota on June 1. Earlier, Minor Hotels withdrew its two Havana properties under the NH brand in February, and Royalton, formerly Blue Diamond Resorts, suspended management of dozens of hotels. Together, the departures point to a wide pullback of international hotel operators from Cuba.

For the operators, the calculus is stark: the risk of US secondary sanctions now outweighs the diminishing returns of a market in steep decline.

An industry already in freefall

The withdrawals hit a sector that has been shrinking for years. Cuba received only about 328,600 international tourists between January and April 2026, a fall of 55.8% from the same period a year earlier. A shortage of aviation fuel had already cut direct flights, including from Canada, the island’s main source market, with at least 11 airlines suspending or reducing service and more than 1,700 flights canceled this year.

Meliá itself had closed about half its capacity on the island in the first quarter, reporting occupancy of around 34% and a 68% collapse in net profit. The brand exits compound an operating environment already battered by blackouts, fuel scarcity and weak demand.

Why it matters

Tourism has long been one of Cuba’s main sources of hard currency, and foreign-branded resorts were central to attracting it. The loss of marquee operators removes the marketing reach and international booking channels that filled those rooms, deepening a crisis the government has struggled to reverse.

The episode is also a case study in how US sanctions policy reshapes business decisions across the hemisphere: a deadline in Washington, aimed at a military-run conglomerate in Havana, is rewriting the plans of hotel groups headquartered in Spain.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief