International Hotel Chains Exit Cuba Amid U.S. Sanctions

In early June 2026, several international hotel chains, including Blue Diamond and Iberostar, ceased operations in Cuba due to U.S. sanctions targeting the military-controlled conglomerate GAESA. The U.S. Treasury Department's ultimatum required foreign companies to sever ties with GAESA by June 2, prompting immediate withdrawals. Blue Diamond, managing 62 properties, transferred control to Gaviota Tourism Group, while Iberostar stopped operations at 12 hotels. On June 2, Archipelago International also exited, marking the third major departure in less than a week. The Cuban tourism sector is facing a crisis, with visitor arrivals down 56% in early 2026. The Cuban government defended GAESA, stating it is crucial for the national economy amidst ongoing U.S. sanctions.

Key Points: • Blue Diamond and Iberostar ceased operations in Cuba due to U.S. sanctions on GAESA. • Archipelago International became the third hotel chain to exit Cuba in less than a week. • Cuba's tourism sector is in crisis, with a 56% drop in visitor arrivals in early 2026.