Spanish hotel chain Meliá to shutter hotels in Cuba in latest blow to island’s tourism sector

Spanish hotel chain Meliá announced it will shut down 15 of its 34 hotels in Cuba, further damaging the country’s struggling tourism industry. The move, effective immediately, leaves the chain managing only 19 of its 14,000 rooms on the island, according to state-run media Cubadebate. Meliá cited ‘corporate responsibility and external factors’ affecting operations, legality, and security, including U.S. sanctions and an oil embargo that have worsened Cuba’s economic crisis. The decision comes weeks after U.S. President Donald Trump expanded sanctions targeting Grupo de Administración Empresarial S.A. (GAESA), a Cuban military-run conglomerate. The sanctions freeze foreign company assets, block U.S. financial access, and restrict travel by investors, effectively isolating businesses like Meliá from U.S. operations. GAESA, which partners with Meliá through its subsidiary Gaviota, manages hotels, car rentals, and retail stores across Cuba. Several of the closed hotels, including those in Varadero, Cayo Santa María, and Jardines del Rey, were already inactive due to energy shortages and plummeting tourism demand. Cuba’s government blames the U.S. energy blockade for prolonged blackouts, water shortages, and disruptions to daily life, including healthcare and supply chains. The tourism sector, once a key economic driver, has collapsed since its 2018 peak, with foreign investors like Meliá reassessing their presence. The closures will impact thousands of Cubans employed in hotels, from drivers to parking attendants. Erich López, a 20-year veteran driver, said the decision threatens livelihoods, as wages depend on tourism. Carlos Luis Carbonel, a 62-year-old parking attendant at the Meliá Cohiba hotel in Havana, called the move ‘terrible’ for workers across the industry. Analysts warn the exodus of foreign investors will deepen Cuba’s economic crisis, leaving local workers and businesses further strained.