Meliá, Iberostar and Barceló pull out of Cuba as Trump sanctions cripple tourism industry

The exit announcement

On Tuesday, Meliá informed Spain's stock market regulator that it would cease all operations in Cuba by Friday 24 July. The company said the latest US sanctions make it "impossible, de facto and de jure, to maintain even minimal operational stability". Hours later, Iberostar and Barceló confirmed they too would leave the island. The three chains are among the largest foreign hotel operators in Cuba, and their departure marks the end of a 36-year Spanish dominance of the sector.

The latest US sanctions make it impossible, de facto and de jure, to maintain even minimal operational stability.

The group, which operates 34 hotels with roughly 14,000 rooms, had already suspended management of 15 properties in June after the US targeted the military conglomerate GAESA. The remaining 19 were run in partnership with the tourism ministry, now also blacklisted.

Sanctions pressure

The US has steadily tightened restrictions since President Donald Trump took office. On 1 May, Washington imposed secondary sanctions on any foreign company doing business with GAESA, the Cuban military conglomerate that controls large parts of the economy. Then on 13 July, the US blacklisted Cuba's Ministry of Tourism, the partner for Meliá's remaining 19 properties. The sanctions freeze assets, block access to the US financial system, and impose travel bans on shareholders and employees. An energy embargo since January has cut off all oil shipments except a single Russian tanker, deepening Cuba's crisis.

A 36-year footprint

Meliá first arrived on 10 May 1990, opening the Sol Palmeras resort in Varadero as the first foreign joint venture with communist Cuba. By the early 2000s it operated eight hotels and nearly 9,000 rooms, hosting a third of all visitors. At its pre-pandemic peak in 2020, the chain managed 35 hotels with 14,781 rooms, roughly 18% of its global portfolio. Across its history, Meliá's 34 properties accounted for about 16% of all accommodation on the island, with a presence in Havana, Varadero, Trinidad, Santiago de Cuba, Cienfuegos, Cayo Coco, Cayo Santa María and Holguín. Its success gave confidence to other Spanish chains like Iberostar and Barceló to enter the market.

Wider impact on Cuba

Cuba's tourism industry was once a pillar of the economy. The departure of Meliá, Iberostar and Barceló strips away a large share of the island's high-end room capacity. The country is already reeling from daily blackouts lasting more than 20 hours, medicine shortages, a collapsed water supply and paralysed transport. Paolo Spadoni, an associate professor at Augusta University, said Trump's policies are "methodically and systematically closing every source of foreign currency for the Cuban government". The exodus of Spanish chains follows the capture of Venezuela's former president Nicolás Maduro in January, which the US used to ramp up pressure on Havana.

Trump's policies are methodically and systematically closing every source of foreign currency for the Cuban government.

What comes next

Meliá said it would work to ensure an orderly transition for staff, suppliers and clients. The future of the properties is uncertain; they may revert to state management or remain shuttered. Some analysts fear the sanctions could entrench a humanitarian crisis without bringing democratic change. For now, the Spanish hotel era in Cuba appears over.