The Spanish group Iberostar and the Canadian Blue Diamond, two of the most important hotel chains in Cuba, have wholly or partially ceased their operations on the island driven by the energy collapse and pressure from the United States.
In the case of Iberostar, the second largest hotel group on the island, the decision affects 12 of the 16 establishments that operate in Cuba, specifically those that belong to Gaviota, a subsidiary of Gaesa (Grupo de Gestión Empresarial SA), the business conglomerate of the Cuban Armed Forces.
The company maintains its presence in four other hotels that it manages on the island and that belong to other groups not linked to Gaesa, including Cubanacán and Gran Caribe.
Blue Diamond, Cuba’s third largest hotel company, announced last Friday that it was ceasing all operations on the island “with immediate effect.” The chain operated dozens of hotels under the Royalton, Resonance, Starfish, Recollections and Mystique brands, mainly in Havana, Varadero and Cayo Largo del Sur.
The decision represents “another blow to the faltering Cuban tourism industry,” explains the BBC’s correspondent in Cuba, Will Grant.
The hotel companies’ withdrawal came amid a maximum pressure campaign exerted by the Trump Administration on Cuba, which has included a months-long oil embargo in an attempt to force the island’s government to undertake radical changes.
Recently, in addition, the president of the United States, Donald Trump, signed an executive order that promises to sanction, as of June 5, all those people or companies that maintain economic ties with Gaesa.
Neither of the two hotel companies officially linked pressure from the United States as a reason for ceasing their operations in Cuba, although Iberostar points out that it has made the decision “as part of a process of adaptation to the international regulatory environment and with the purpose of preserving the quality, compliance and management standards that distinguish the company.”
“Operational limitations”
As of June 1, 2026, the Mallorca-based company said in a statement, the 12 Gaviota establishments that operated in Cuba “will no longer be managed, marketed or promoted under the Iberostar brand.”
Blue Diamond alleges “continued operational limitations and market conditions” as the reason for its departure from Cuba.
Hotel companies are not the only important economic partners that have withdrawn or reduced their operations in Cuba in recent weeks, recalls Will Grant.
The Sherritt mining company, also Canadian, suspended its joint mission in Cuba in the nickel and cobalt extraction sector. And several European airlines have suspended flights to the island because they cannot refuel in Havana.
“Meanwhile, the situation for ordinary Cubans remains critical, with long blackouts almost every day, many hospitals that barely function and schools and businesses affected,” explains the BBC envoy to Havana.
In mid-May, the Cuban Minister of Energy, Vicente de la O Levy, acknowledged that the island had run out of fuel.
Gasoline reserves were limited, he said in an interview with state media, and the Cuban energy system was in a critical situation due to the oil blockade imposed by the United States, which has drastically reduced imports.
“The sum of the different types of fuel: crude oil, fuel oil, of which we have absolutely nothing; diesel, of which we also have absolutely nothing – I repeat – the only thing we have is gasoline from our wells, whose production has increased,” declared Minister De la O Levy.
Some areas of Havana have suffered blackouts of between 8 and 10 hours, hospitals have not been able to function normally, while many schools and government offices have been forced to close.
Continued power outages on the island have even sparked unusual protests from the population, prompting the Cuban government to say it was willing to examine a US aid offer worth $100 million.
Tourism, Cuba’s economic engine, has also been affected, and is now suffering a new blow with the cessation of hotel activities by companies that have ties to the great preserving business of the Armed Forces, Gaesa.
The company does not have a page webofficial contact channels, nor does it publish financial statements or appear in the state budget, but it pockets practically every dollar of the Cuban regime’s most profitable businesses: tourism, remittances, foreign trade or medical missions abroad.
He preservingbelonging to the Revolutionary Armed Forces (FAR), had assets in 2024 of at least US$17.9 billion, including more than US$14.4 billion in bank accounts, according to documents leaked to the Miami Herald newspaper.
The BBC was unable to independently verify the data.
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- Gaesa, the business empire of Cuba’s secret elite that manages billions of dollars
- The Cuban government is considering accepting US$100 million in aid from the United States after announcing that the island has exhausted all its fuel reserves.
