Seeking Better ROI, Cuba Hospitality Companies To Become Landlords Rather Than Managers

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
InterContinental Hotels Group
Kempinski Hotels
Marriott International
Melia Hotels International
NH Hotels
Occidental Hotels & Resorts
RIU Hotels
Starwood Hotels & Resorts Worldwide
Wyndham Worldwide