Spanish hotel chain Meliá is to cease all operations in Cuba at the end of the week due to “major difficulties” in doing business on the island under growing pressure from Washington, according to The Guardian. The latest US sanctions make it “impossible, de facto and de jure, to maintain even minimal operational stability,” the Meliá group explained in a statement to the Spanish stock market regulator.

Retreat of Spanish Hospitality Groups

Meliá, one of the largest foreign hotel operators in Cuba with 14,000 rooms, announced last month that it would cease operating 15 of its 34 hotels in Cuba, according to The Guardian. Iberostar, another major Spanish hotel chain, has also shut down its remaining six hotels in Cuba, effectively ending its operations on the island for now, according to FTN News. The closures took effect on 20 July, and tour operators with bookings from that date onward have already been notified.

Iberostar had previously run 18 hotels in Cuba at the start of 2026, according to FTN News. However, the company cut ties with 12 properties linked to Gaviota, the hotel arm of Gaesa, ahead of a US Treasury deadline tied to an executive order signed by President Donald Trump on 1 May. The remaining six hotels, partnered with Cubanacan and Gran Caribe, have now also closed.

Impact of US Sanctions

Donald Trump. The US president. Ordered new sanctions in May against Cuba, targeting a broad set of individuals and threatening foreign banks and companies that worked with them, according to The Guardian. Washington has blocked all oil shipments to the island since January, with the exception of a single Russian ship.

According to reports cited by Reise vor9, the latest US measures played a key role in Iberostar’s decision to pull back completely. The retreat marks a major setback for Cuba’s already struggling tourism industry, historically one of the island’s most important sources of foreign currency, according to FTN News.

Operational and Economic Challenges

Meliá was the first Spanish hotel group to establish a presence in Cuba after the Caribbean nation opened its tourism sector to foreigners in the 1990s, according to The Guardian. The company said it would strive to ensure a smooth transition to reduce the impact as much as possible on staff, suppliers, and clients.

Iberostar has kept one property. Iberostar Havana Parke Central. Open in name only. With Cubanacan Group expected to handle its marketing going forward, according to FTN News. Meliá has also sharply cut its Cuba portfolio, falling from 35 hotels at its peak to just six still open, in Havana, Varadero, and Cienfuegos, according to Reise vor9’s research.