Ever since the 1959 revolution we had no US brand involved in hotel operations in Cuba but this changed now under a historical move that saw the Gaviota 5th Avenue Hotel come under US based management from Starwood Hotels & Resorts Worldwide. We thus have the first ever hotel that comes under US operation management in over 50 years, a move that can lead to many more hotel chains being interested in offering such services in Cuba.
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Such an arrangement was prohibited for tens of years because of the US economic embargo that affected the island. The embargo is still reality but the Obama administration did loosen trade and investment restrictions because of the December 2014 Cuba détente.
Nancy Sarabia, hotel PR manager, declared:
“This is a historic moment.” She also added that the hotel now stands out as “a symbol of brotherhood and collaboration.”
Starwood stands out as the first of the US companies that commit large amounts of money to Cuba after the Fidel Castro rebels overthrew the pro USA government in 1959. This can now lead to many rest and relaxation opportunities offered in Cuba especially for US citizens, marking an increase in tourism.
According to Starwood representatives, the hotel is going to be refurbished but it will not close during the process. Several months will pass until everything will be finished, including re-painting the lobby, rooms and refurnishing rooms. Even so, the hotel already started to be featured on international booking sites like HolidayMe.com for future dates.
Starwood will also be involved in the operation of Gran Caribe Inglaterra Hotel after August 31st, marking a move from state ownership management.
President Barack Obama has been vocal about the fact that Washington has to increase special permission issuing to the companies that want to do business in Cuba because the embargo was basically a failure. The lifting of strict restrictions did lead towards many companies being interested in the opportunity. We even saw Stonegate Bank quickly going through the procedures to offer credit cards that can be used in the country of Cuba. These cards can now be utilized by clients to withdraw in the country.
The Cuba embargo is still in place. Examples highlighted above showcase just some rule exceptions. It is the job of the US congress to remove the embargo. Also, Republican majority does want to maintain the embargo because of the political problems and the media monopoly present in Cuba.
Various US businessmen saw Cuba as a completely missed opportunity. Since changes appeared in the past few months, many of them are now interested in making similar moves. Various US hotel chains now want to buy, build or manage some establishments, especially because of the tourism boom that Cuba recently experienced. In the first months of 2016 the country saw 1.5 million tourists, which is 13.5% more than in 2015 in the same period. That is mainly because of more relaxed travel restrictions for US travellers. If the travel ban is completely removed, the number is expected to at least double.
Gaviota 5th Avenue Hotel is already booked to a high degree and many dates are completely sold out.