U.S. Economic War Drives Hotel Chains Out of Cuba

Three Spanish hotel chains — Meliá, Iberostar and Barceló — announced today they will cease operations in Cuba. 

Meliá announced this morning that it will shut down operations at all 34 of its Cuban properties by July 24. 

Iberostar (18 hotels) and Barceló (2 hotels) told Diario ABC today they would also be leaving the island.

The exodus comes a week after the Trump administration added Cuba’s Tourism Ministry to its list of sanctioned entities. The listing threatens “secondary sanctions” on non-U.S. companies doing business with blacklisted Cuban entities.

Melía, in an official filing to Spanish financial regulators, cited "significant operational, legal, economic and financial difficulties" that have made "a minimum level of operational stability" impossible.

Iberostar and Meliá had already been cutting ties with Cuba. In May, Iberostar announced it would suspend operations at 12 of its properties tied to GAESA, Cuba’s military-run conglomerate, which was among the first entities added to the U.S. blacklist. Meliá followed in June, halting operations at 15 properties. 

The targeting of the Tourism Ministry seems to have been the final blow, as the companies are cutting ties with their remaining Cuban hotels.