Meliá Hotels Reports Strong 2015 Financial Performance in Cuba

Citing improved relations between Cuba and the US, Meliá Hotels recently reported impressive 2015 financial performance from its Cuba revenue base of $435.4 million (management revenue included €19.5 million generated by third-party hotel management in Cuba).

The Spanish hotel company was one of the first foreign hotel companies to begin operations in Cuba after the island national opened its hotel sector to outsiders in the 1990s. Today, the hotel group manages 29 hotels in Cuba with 12,552 rooms, up from 12,310 rooms in 2014.

The company reported 5.7 million overnight stays in 2015, with an average occupancy of more than 70%. Its Cuba hotel operation is managing hotel assets under contract with local hotels owners, a group of three military-affiliated Cuban entities: Gran Caribe Hotel Group, Gaviota SA Tourism Group Corporation and International Trade and Tourism Cubanacan SA.

Melia Hotels in Cuba

Meliá expects to realize important new projects in the next two years, most notably: the opening of the Melia Varadero International (1174 rooms in 2018); the renovation of Tryp Habana Libre and conversion to the Meliá brand (2017-2018); and the construction of the Meliá Trinidad (400 rooms in 2018). Longer-term, the company wants to introduce new brands, including Innside, and explore two new projects in Old Havana.

Starwood Hotels & Resorts Worldwide announced last month that it has  partnered with several Cuban entities to manage hotels in the island nation.

Starwood’s deals, made possible through what appears to be unique approval from the Obama administration, marks the first US hotelier to operate in Cuba since the 1959 revolution.

The sites include: Hotel Inglaterra, owned by Gran Caribe, will become one of Starwood’s Luxury Collection hotels. The Quinta Avenida, run by Gaviota, will become a Four Points by Sheraton hotel. A third location is reported to be under letter agreement so far.

Marriott International also announced plans to enter the Cuban market.melia cohiba havana cuba

Here is Cuba’s Q1 2016 Hotel Pipeline

About Meliá Hotels International

Founded in 1956 in Palma de Mallorca (Spain), Meliá Hotels International is one of the largest hotel companies worldwide as well as the absolute leader within the Spanish market, with more than 370 hotels (current portfolio and pipeline) throughout more than 40 countries and 4 continents under the brands: Gran Meliá, Meliá Hotels & Resorts, Paradisus Resorts, ME by Meliá, Innside by Meliá, Tryp by Wyndham and Sol Hoteles. The strategic focus on international growth has allowed Meliá Hotels International to be the first Spanish hotel company with presence in key markets such as China, the Arabian Gulf or the US, as well as maintaining its leadership in traditional markets such as Europe, Latin America or the Caribbean. Its high degree of globalization, a diversified business model, the consistent growth plan supported by strategic alliances with major investors and its commitment to responsible tourism are the major strengths of Meliá Hotels International, being the Spanish Hotel leader in Corporate Reputation (Merco Ranking) and one of the most attractive to work worldwide.

Meliá Hotels Reports Strong 2015 Financial Performance in Cuba was last modified: June 8th, 2017 by Simons Chase