Latest Cuban Investing News
Latest Cuban Investing News: The emblematic Havana Libre and Riviera hotels are set to receive financing totaling approximately $60 million dollars from their respective administrators, the Spanish groups Meliá Hotels International and Iberostar. The hotels are expected to use such financing proceeds as part of a comprehensive program that would restore the splendor to both facilities and update them to the latest international trends.
The Cuban Ministry of Tourism (MINTUR by its Spanish acronym) has clearly prioritized building new hotels in Cuba but has also made the recovery and redevelopment of existing hotels a top priority as well. In furtherance of this goal, the MINTUR has started an ambitious hotel development program that is expected to continue until 2030. In addition to its development program, MINTUR has set its sights on increasing the standard of existing Cuban hotel facilities in an effort compete as a prime Caribbean tourist destination.
Meliá, the longest-standing foreign hotel chain operating in Cuba, will likely close this year with approximately 34 hotels and 14,661 rooms under management on the island. Meanwhile, Iberostar currently operates 27 hotels with roughly 7,881 rooms in Cuba.
Though Cuba’s existing hotel infrastructure contains only 70,879 rooms, approximately 67% of which operate under some form of foreign investment, There are currently 27 joint ventures planned as part of Cuba’s commitment to the tourism industry.
Cuba also has the potential to develop an additional 400,000 hotel rooms, which could be vital to the development of Cuba’s tourism sector. As a result, the Cuban government is currently seeking alliances with prestigious international companies that possess a well-regarded reputation, financial strength and international experience in tourism and hospitality.
Tourism remains the second largest source of income for Cuba, with approximately 5.1 million travelers estimated in 2019. Canada, in particular, continues to be the principal market for tourism to the island, with an estimated one million Canadian visitors each year.
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