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After Meliá and Iberostar: Who Builds and Runs Cuban Resorts Now

The foreign hotel chains that ran Cuba's resorts have been leaving. Here is what that changes for who builds, owns and operates them.

For thirty years the standard Cuban resort was state-owned and run by a foreign hotel chain. In mid-2026 that model broke. This page explains how it worked, why the chains left, and what the government says comes next. It is an explanation, not a development offer.

The basics

How the model worked

State groups owned hotels and land, and foreign chains such as Meliá, Iberostar and Barceló ran them under management contracts.

What changed in 2026

Meliá announced on 26 May that it would stop operating 15 of its 34 Cuban hotels, and Iberostar scaled back as well, after new US sanctions on GAESA.

What is proposed

President Díaz-Canel said on 6 June that hotels would be opened to management by Cubans at home and abroad, with business models still to be set.

How it really works

Ownership and management were separate

In the classic Cuban resort the state group owned the hotel and the land, while a foreign chain supplied the brand, booking system and management in return for a fee. The foreign company did not own what it ran. That is why the departures of 2026 left buildings standing and contracts ended rather than hotels sold.

Why the chains left

A US executive order on 1 May 2026 targeted GAESA, the military-run conglomerate that owns Gaviota, the tourism group that was Meliá's partner. Foreign companies were told to cut ties by 5 June or risk secondary sanctions. Meliá ended management and marketing of its Cuban hotels, with its subsidiary's services ending in July according to press reports, and Iberostar halted operations at a large share of its hotels.

Who is left

Barceló reportedly runs two Varadero hotels, with 1,353 rooms in all, under contracts renewed in 2017 that run to 2027, and it is not expected to renew them. Smaller operators and the state brands remain. The question for owners is who can supply international distribution, training and credibility once the big brands go.

The government's answer

In an interview broadcast on 6 June, the president said Cubans living on the island and abroad would be invited to manage hotels under different business models. The detail was not stated. Independent analysts have not yet assessed whether Cuban managers can restore the booking channels the chains provided.

What this means for building

New resort construction depends on partners who bring capital and bookings. With the foreign chains retreating and a fuel crisis closing hotels in Varadero, new development is unlikely in the short term, and the reported plan emphasises management of existing hotels rather than new construction.

US law applies — read this first

US persons may not invest in or manage Cuban resorts without authorisation under the Cuban Assets Control Regulations (31 CFR Part 515). Executive Order 14404 (1 May 2026) and OFAC FAQ 1254 extend sanctions risk to foreign companies dealing with GAESA and entities it owns, which is the reason several chains withdrew.

Where this leads on CubaAtlas

The useful next steps — the lawful ones.

Sources

cubaresortdevelopers.com · Part of the CubaAtlas network · cubaatlas.com

In depth

How Cuban resorts are developed: state land, management contracts and the real-estate tourism model

The hotels and resort areas of Cuba follow a model that differs from most Caribbean destinations. The state owns the land and usually the buildings, foreign companies manage the hotels under contract, and a small number of real-estate tourism projects have allowed long-term rights for foreign buyers. This guide explains that model, the role of the state hotel groups, the management contract, the location of resort zones and the environmental questions, and lists the sources for readers who want to study it. It is information only.

Resort zones and the cays

Cuba's modern resort development is concentrated in a few areas. Varadero, on the Hicacos peninsula, has been a beach destination since the late 1800s and is the largest resort zone. The Jardines del Rey cays, including Cayo Coco and Cayo Guillermo, and the Villa Clara cays around Cayo Santa María were developed from the 1990s, linked to the mainland by long causeways. Guardalavaca in Holguín, Cayo Largo del Sur and parts of the south coast near Trinidad are other areas.

Planning for these zones is carried out by national and provincial planning bodies, which define the number of rooms, the density, the infrastructure and the environmental limits. Because the cays are ecologically sensitive, with mangroves, reefs and bird colonies, planning documents set restrictions on building height, coverage and access.

State groups and management contracts

Tourism in Cuba is organised through state hotel groups that own and operate hotels and resorts. Foreign hotel companies, particularly from Spain, Canada and other countries, have entered the market as managers under contracts with those groups. Under a management contract, the foreign operator runs the hotel, brings its brand and reservation systems, and receives a fee, while the state group remains the owner. Some arrangements have been structured as joint ventures.

For the traveller, the effect is that a hotel under an international brand is usually owned by a Cuban state entity. For the operator, the relationship depends on a contract that covers fees, standards, investment in maintenance and the term. These contracts are commercially confidential, and public information about them is limited.

Real-estate tourism

In the 2010s, Cuba authorised a limited form of real-estate tourism that allowed foreign investors to build and sell villas and apartments as part of resort complexes, with golf courses and marinas. The model gave buyers rights over the property for a long period under a right of surface rather than freehold ownership. Several projects were announced, but the number completed has been small, and the status of each should be verified with the Cuban authorities.

Anyone encountering marketing for such projects should check that the project has been approved, that the rights are registered, and that the seller is authorised. The mere existence of an artist's impression is not evidence that a project exists.

Infrastructure and services

A resort needs reliable electricity, water, sewage treatment, roads and communications. In the cays, power has often been supplied by dedicated plants and water by desalination or long pipelines. The cost and reliability of these services affect operations. Recent years have seen outages and shortages that have hit resorts as well as cities, and some hotels have invested in generators and solar systems.

Environment and community

Resort development has environmental effects. Causeways can disturb water flow in lagoons, construction can damage coastal vegetation, and wastewater can affect reefs. Protected areas such as biosphere reserves and national parks limit development, and environmental licences are required. Communities near resorts supply workers, food and services, and the relationship between hotels and local people is a subject of study.

For researchers and visitors, the contrast between heavily developed coasts and protected ones is part of what makes the Cuban shoreline distinctive.

Numbers and sources

Statistics on room stock, visitor arrivals and occupancy are published by the national statistics office and by the tourism ministry, and international tourism data are collected by the United Nations tourism agency. These sources let a reader see trends in arrivals and capacity. They also show how dependent resorts are on source markets such as Canada and Europe and how they were affected by the pandemic and by policy changes in other countries.

This page does not promote or sell resort investments, and it is not an offer of units or management rights.

Golf, marinas and other amenities

Resort developments around the world often add golf courses, marinas, spas and shopping to hotels and housing. Golf courses require large areas of land, large volumes of water and careful maintenance, and they can have significant environmental effects. Marinas need sheltered water, dredging and fuel facilities. These amenities raise the appeal of a resort and the value of property around them, and they are a major reason why real-estate tourism was proposed for Cuba. Several golf projects were announced, and their approval depends on environmental review and water availability.

A reader should ask of any amenity: who has approved it, what resources it uses, and who will pay for its upkeep. An amenity without secure funding often deteriorates.

Environmental assessment of resort projects

An environmental impact assessment examines how a project will affect land, water, air, wildlife and communities. For a coastal resort, it considers beach erosion, reef damage, mangrove loss, wastewater and freshwater use, as well as noise and light. The assessment proposes measures to avoid, reduce or compensate for impacts. Cuban authorities require assessments for projects of certain types and sizes, and communities may be consulted. Independent scientists have studied the effects of causeways and resort construction in the northern cays.

Local supply chains for hotels

A resort is a large buyer of food, furniture, linen, cleaning products and services. When it sources locally, it supports farmers and small producers; when it imports, it spends foreign currency. Tourism officials have tried to increase the share of local products used in hotels, through contracts with farms and cooperatives and programmes to improve quality and consistency. The challenge is to guarantee volume, quality and timeliness. Where it succeeds, local supply chains offer income for communities and fresher food for guests.

Branded residences around the world

Residential units sold alongside hotels under a hotel brand are called branded residences. Owners benefit from services such as housekeeping, security and access to facilities, and the brand supports value. They pay service charges, and rules govern how units can be used. The model has spread worldwide, particularly in markets with strong tourism. Its success depends on clear legal title, transparent charges and a competent operator. Where title or management is weak, owners can be disappointed.

A short timeline of Cuban tourism policy

Tourism policy in Cuba has changed over time. After 1959, the sector declined as the country focused on other priorities. In the early 1990s, facing a severe economic crisis, the government reopened to international tourism and encouraged foreign partners to build and manage hotels. Growth was rapid through the 1990s and 2000s, with Canada and Europe as main sources of visitors. In the 2010s there was an opening to the United States, followed by restrictions. The pandemic in 2020 caused a collapse in arrivals, and recovery has been uneven. Each phase left its mark on the stock of hotels and resorts.

This page is descriptive. It does not offer resort investments.

From site selection to opening: a resort timeline

A resort project moves through stages. First comes site selection and planning, including environmental and market studies, which may take a year or more. Next come approvals and the negotiation of contracts with partners and operators. Design follows, then procurement of materials and equipment, often imported, and construction of infrastructure and buildings, which typically takes two to three years for a large hotel. Furnishing, staff recruitment and training, testing of systems and a soft opening precede the full launch. Marketing and distribution agreements run in parallel. The whole path can take five years or more from first idea to first guests.

Delays at any stage push back the opening and raise costs. Experienced developers build slack into their schedules and watch critical paths such as imports and approvals.

Training the workforce

A hotel's success depends on its people. Cuba has hotel schools and universities that train managers, chefs, waiters and housekeepers, and operators run their own training programmes. Staff learn languages, service standards, food safety and technical skills. Training before opening is an investment that pays off in quality. Retaining trained staff requires fair pay, good conditions and career paths.

Water, waste and energy systems

Resorts need robust systems for water supply, wastewater treatment, solid waste management and power. On the cays, water may be piped long distances or produced by desalination, wastewater is treated and reused for irrigation where possible, and waste is separated and removed to mainland sites. Power comes from the grid with backup generators and increasingly from solar. The design of these systems affects the environment and the guest experience, and their operation requires skilled staff and spare parts.

Distribution and marketing in practice

Rooms are sold through tour operators, travel agencies, online platforms and direct bookings. Foreign operators bring distribution networks, particularly in source markets such as Canada and Europe. Marketing emphasises beaches, culture, music and value. Reservations depend on flights, which in turn depend on airline decisions. A hotel with good access and a strong operator's network fills more easily. Sales agreements and commissions affect revenue.

This page does not sell resort investments.

Lessons from resort projects elsewhere in the Caribbean

Caribbean resort development has produced both successes and cautionary tales. Successful projects respected the environment, engaged local communities, used local products and trained local staff, and kept their facilities in good condition. Failures included overbuilding, damage to reefs and beaches, unfinished developments after financing collapsed, and conflicts with communities over access and jobs. Observers of Cuban projects can compare with these experiences to understand risks and opportunities.

The role of local suppliers in resort development

Resort construction and operation can benefit local suppliers of materials, furniture, food, laundry, transport and crafts. Developers who plan early for local sourcing, share requirements, help suppliers meet standards and pay promptly build durable links. Local procurement also reduces import needs and transport costs. Where quality or volume is lacking, training and joint planning help. The benefits spread beyond the resort to the wider economy.

Common questions

Who owns Cuban hotels?
Usually Cuban state groups, often with foreign companies managing them under contract.
Can foreigners buy villas in a resort?
Only in limited, approved real-estate tourism projects, with long-term rights rather than freehold.
Where are the main resort zones?
Varadero, the Jardines del Rey cays, the Villa Clara cays, Guardalavaca and Cayo Largo, among others.
What do management contracts cover?
Operation of the hotel, fees, standards and investment, for a set term.
Do you sell resort investments?
No. This page is information only.
How do developers deal with hurricane risk in design?
By following wind-load standards, anchoring roofs, using impact-resistant openings, raising ground levels, protecting equipment and planning evacuation. These measures add cost but reduce losses.
Do resorts hire local people?
Yes, mostly from nearby towns, with training provided by operators and schools. Local hiring is part of the model, though conditions and pay depend on the employer.
How are guests' flights arranged?
Through airlines and tour operators. Resorts near airports, such as those on Cayo Coco and Varadero, benefit from direct flights. Remote cays rely on road transfers.
What role do designers play in resort identity?
Architects and landscape designers shape how a resort looks and feels, using local materials, colours and forms. Resorts that reflect local culture and landscape tend to age better and attract guests seeking authenticity.

Official sources and where to go next

Links open the publisher's own site. CubaAtlas does not operate, sell, book or clear anything and earns nothing from these links.