Spanish hotel group Iberostar has ended management of 12 hotels in Cuba linked to the island's military-controlled business conglomerate Gaesa, becoming one of the first major foreign companies to move ahead of looming US sanctions targeting businesses connected to the Cuban armed forces.
The Mallorca-based company informed business partners that it would stop operating the hotels from June 1 as part of efforts to adapt to the international regulatory environment and maintain compliance standards, Spanish daily El Pais reported.
The affected hotels were operated by Iberostar but owned by Gaviota, the tourism subsidiary of Gaesa, a military-run conglomerate that controls a significant share of Cuba's tourism industry and broader economy.
The US has set June 5 as the deadline for foreign companies to sever ties with Gaesa or risk sanctions.
While Iberostar has not publicly confirmed the move, its Cuba website now lists six hotels on the island, down from 18 previously. According to El Pais, the remaining six hotels are operated through partnerships with Cuban state tourism groups that are not linked to Gaesa.
The decision adds pressure on Spanish hotel group Melia Hotels, the largest foreign hotel operator in Cuba, which US authorities have identified as potentially vulnerable to sanctions because of its operations on the island.
According to El Pais, Cuba accounts for around 14% of Melia's global room portfolio. The company has not publicly commented on how it intends to respond to the sanctions threat.
The development comes as Cuba's tourism sector faces growing challenges, including electricity shortages, difficulties securing food and beverages, and a decline in international air connections and visitor arrivals.
The withdrawal also follows the recent departure of Canadian hotel operator Blue Diamond from Cuba. The company said deteriorating operating conditions and weakening demand prompted its exit from managing Cuban properties, rather than concerns over potential US sanctions.
