Leading Spanish hotel chains with investments in Cuba are adopting a strategy of silence and caution as President Donald Trump intensifies political pressure on the Caribbean island, according to industry representatives.
Amidst geopolitical uncertainty following rising international tensions, Javier Vich, the president of the Mallorca Hotel Federation—an association that includes major chains with interests in the Caribbean—has confirmed that these companies have not publicly expressed concerns or issued statements regarding their operations in Cuba.
"We don't have direct information from the chains. All I can say is that the chains have not made any statements so far. There's no concern at the moment, and we don't have further information," Vich stated to OK Diario during the International Tourism Fair in Madrid.
The Mallorcan Hotel Sector's Presence in Cuba
The hotel sector in Mallorca—part of Spain's Balearic Islands—has established a strong foothold in the Cuban market. Major Spanish tourism chains with Mallorcan capital, such as Meliá, Iberostar, Grupo Piñero, Barceló, Roc, and Blau, operate approximately 70 establishments across various tourist destinations on the island.
Despite this significant business investment, the companies have chosen to remain cautious, refraining from making public comments until Washington finalizes any potential new policies or measures against Cuba.
Legal and Operational Concerns
The underlying concern is that with the U.S. shifting its focus toward the region, including warnings of political or economic interventions against Havana, there might be repercussions for the legal and operational security of foreign hotels.
A Troubled Past with Trump
Mallorcan hoteliers have previously faced confrontations with U.S. policies. In 2019, during Trump's first term, parts of the Helms-Burton Act were activated. This legislation allows for lawsuits against companies operating on properties confiscated in Cuba, leading to clashes between investors and the U.S. administration.
That year, Meliá faced its first lawsuit in the U.S. under this law, accused of trafficking in properties seized by the Cuban regime. The Cuban-American Mata family filed a class-action suit in a federal court in southern Florida.
The decision to await Trump's "next move" stems from a sector-wide perception that potential policy shifts towards Cuba—especially following the capture of Nicolás Maduro—might determine the future of these investments.
Current Operations and Future Prospects
For now, hotel operations continue "normally" in the Caribbean nation, yet operators remain vigilant for developments that could disrupt the political and economic landscape.
The Ongoing Crisis in Cuba's International Tourism
The focus on caution occurs against the backdrop of a prolonged crisis in Cuba's international tourism sector, where hotels operate with minimal staff, endure power and water outages, and face food shortages.
Meliá Hotels International disclosed that in 2024, there was a decline in management fee revenues in Cuba, resulting in a loss of approximately 5 million euros.
"In Cuba, the situation remains challenging, with no clear signs of improvement in supply issues and energy shortages. The coverage and impact of the news have negatively affected the tourism sector," acknowledged the chain's executives.
In this environment, Mallorcan hoteliers with interests on the island prefer to maintain their strategy of public silence while assessing U.S. foreign policy moves before making statements that could affect their businesses or relationships in Cuba.
FAQs on Spanish Hotel Chains and U.S. Policy in Cuba
Why are Spanish hotel chains cautious about making statements on Cuba?
Spanish hotel chains are cautious because they are waiting for the U.S. to finalize any potential new policies or measures against Cuba. They want to avoid making statements that could affect their business operations or relationships on the island.
What challenges do Spanish hotel chains face in Cuba?
Spanish hotel chains in Cuba face challenges such as supply issues, energy shortages, and geopolitical uncertainties that could impact the legal and operational security of their establishments.
How has the Helms-Burton Act affected Spanish hotel chains in Cuba?
The Helms-Burton Act allows for lawsuits against companies operating on confiscated properties in Cuba. In 2019, Meliá faced a lawsuit in the U.S. under this law, which has created legal challenges for Spanish hotel chains.