Spain's Melia Hotels International Reports First Quarter For Cuba: Occupancy Rate -82.3% For Its 32 Hotels (19,916 rooms) Under Management Contract

Melia Hotels International (2019 revenues approximately US$2.1 billion)
Palma de Mallorca, Spain

2021 First Quarter results
Management Contracts For Hotels In Republic Of Cuba: 32
Rooms Under Management Contract In Republic Of Cuba: 19,916
Republic of Cuba Occupancy Rate: -82.3%
Republic of Cuba Third Party Fees: -90.4%
Republic of Cuba Hotels: 16.8% of rooms (of 317 global)
Republic of Cuba Hotel Pipeline: 7.3% of rooms (of 51 global)
Hotels Expected In 2022: 1 (401 rooms)
Hotels Expected In 2023: 3 (523 rooms total)

Excerpts:

“In Cuba, expectations of a slow but gradual improvement in tourist arrivals in the first quarter of the year were quickly frustrated. At the end of the year, a new wave of the pandemic began which caused the country to once again impose travel restrictions from the first week of January and significantly reduce the number of flights by all airlines. From the same date, travellers were also required to present a negative PCR test and some of them not travelling with a package tour were required to quarantine. In the first quarter, air travel was basically restricted to a few flights from Russia to the Cayo Coco area and from Germany to the Varadero area, in addition to a few flights to Havana from Spain, France and Panama. On the other hand, the renovations in important hotels in the country continued in the quarter.”

“In Cuba, the situation with flights and visitor arrivals in the second quarter of the year is expected to be similar to the first quarter. The positive news continues to come from Russian market, with the announcement of the restart of seven weekly flights to Varadero from April 18. At the moment there is no confirmation of other flights from other markets in the second quarter, although Canada and Latin America plan to resume operations from July. A recent development with potentially favorable implications for the destination is the progress to Stage 3 in March of two domestically produced vaccines, which could allow the country to undertake a massive vaccination campaign which would cover a very high proportion of its population by June or July.”

LINK TO COMPLETE REPORT