The Spanish hotel chain Meliá, with 34 hotels in Cuba, will cease all its activity on the Caribbean island this Friday, July 24, due to "notable operational, legal, and economic-financial difficulties" in the country following the United States blockade.
The decision completes the partial exit undertaken last June when the group controlled by the Escarrer family decided to suspend its contracts with the Gaviota group, related to the Army and owner of networks of hotel establishments, gas stations, currency exchange offices, and supermarkets on the island. In June, Meliá and the vast majority of Spanish companies operating on the island in collaboration with the regime suspended their contracts due to threats of retaliation from the United States.
As communicated this Tuesday to the National Securities Market Commission (CNMV) by the chain based in Palma de Mallorca and with 34 hotels in Cuba, its subsidiary in Portugal, Ilha Bela Gestao e Turismo, through which it operates in Cuba under management, has decided to conclude the provision of services in all establishments on the island starting July 24.
The lack of fuel is the most visible problem in a country that has traditionally been a top destination for Spanish hotel chains like Meliá, Barceló, Iberostar, or airlines like Iberia or Air Europa. The difficulties and threats of clashing with the U.S. administration or facing lawsuits from owners of expropriated establishments or lands in Cuba are risks that have become increasingly relevant in recent months. The Escarrer family group has acknowledged that the decision is a result of the "notable operational, legal, economic, and financial difficulties that persistently have been affecting" Cuba, following the embargo decreed by U.S. President Donald Trump, which de facto and de jure make "minimal operational stability" impossible, the company states.
The cessation of activity extends to the use of authorized brands, tourist reception activities, and the local supply chain linked to the supply of establishments.
In its statement, Meliá explains that it is evaluating the financial impacts of this decision, including the potential revision of the book value associated with operations in Cuba, which will be specified when the first-half accounts are published.
The Portuguese subsidiary is working to ensure an orderly transition so that the exit has the least possible impact on employees, suppliers, and customers, the hotel chain points out.
Already on May 7, when presenting the results for the first quarter of the year, Meliá reported that it had closed 50% of its operational capacity in Cuba due to the U.S. commercial blockade.
As explained then, it had in its portfolio 34 hotels (some of them already closed by that time, although the exact number was not specified), with 14,053 rooms, and had two others in the pipeline, which it initially planned to open this year.
Meliá sources indicated that the total portfolio was operational an average of 60% of the days in the quarter, which was significantly compromised after U.S. intervention in the region earlier in the year.
This intervention created an "unexpected difficulty" in obtaining fuel, which, along with the strict commercial blockade, strongly affected the tourist market.
The hotel chain reported an occupancy in its establishments in Cuba of 34.1%, 6.5 points below the first quarter of the previous year and well below the average of its portfolio (58.8%, with an increase of 1.7 points).
The RevPAR (revenue per available room, which gives an idea of the profitability of operations considering occupancy) stood at 34.4 euros on the island, 8.6% less than a year earlier, compared to an average of 84 euros in all its hotels.