During the next two years, Republic of Cuba government-operated companies that currently manage properties under their brand names (Gran Caribe, Gaviota, Cubanacan, Hoteles Habaguanex, etc.) will sign management agreements with non-Republic of Cuba government-operated companies.
The Republic of Cuba government-operated companies will become landlords rather than property managers. Currently, the hospitality sector is under the auspice of entities affiliated with the Revolutionary Armed Forces of the Republic of Cuba (FAR).
There will likely be opportunities for Republic of Cuba nationals to either purchase, lease, or obtain management contracts for smaller properties in less-populated locations and where the property requires extensive renovation investment.
The reason for the transition is Republic of Cuba government-operated companies lack the resources to properly and globally manage, market, and maintain properties to international hospitality standards.
Properties rated five-stars in the Republic of Cuba generally equate with two-star to three-star properties in the United States.
There are no properties in the Republic of Cuba that would achieve a AAA Five Diamond Award from the Heathrow, Florida-based AAA (formerly American Automobile Association) or a Five-Star Rating from the Atlanta, Georgia-based Forbes Travel Guide.
The government of the Republic of Cuba will increase net income even with payment to third-party managers, due to expansion and increased quality of the customer experience.
Some of the companies expected to continue management contracts and those which may obtain management contracts include, but are not limited to:
Accor Hotels Barcelo Hotels & Resorts Best Western Hotels Blau Hotels & Resorts Blue Diamond Hotels & Resorts Carlson Rezidor Hotel Group Choice Hotels Four Seasons Hotels & Resorts Hilton Worldwide Hyatt Hotels & Resorts Iberostar InterContinental Hotels Group Kempinski Hotels Marriott International Melia Hotels International NH Hotels Occidental Hotels & Resorts Paradisus RIU Hotels Starwood Hotels & Resorts Worldwide SuperClubs Wyndham Worldwide
U.S. - Cuba Trade and Economic Council, Inc.
Established in 1994, the U.S.-Cuba Trade and Economic Council provides an efficient and sustainable educational structure in which the United States business community may access accurate, consistent, and timely information and analysis on matters and issues of interest regarding United States-Republic of Cuba commercial, economic, and political relations.