27 October 2025
In a far-reaching decision for Cuban tourism and potentially all foreign exchange earning foreign investments, the Spanish hotel group Iberostar has signed a lease agreement with the Gaviota tourism group..
This will enable Iberostar to have operational autonomy over the Iberostar Origin Laguna Azul hotel in Varadero, a property it presently manages, according to the company and Cuban reporting.
The agreement will replace on 1 January 2026 the existing management contract that Iberostar Cuba Hotels & Resorts has on the property with Grupo de Turismo Gaviota. Ownership remains with the Cuban group.
The announcement represents a conceptual shift in Cuba’s thinking about foreign investment. It follows remarks made by Cuba’s Prime Minister, Manuel Marrero, in late July when the island’s National Assembly met. At the time, he informed delegates that as a part of the country’s macro-economic reform process, government would establish a basis for wholly foreign-owned companies to invest, lease, and operate Cuba’s tourism facilities.
He also noted that other investment related measures will focus on establishing as wholly foreign-owned companies those that sign leases for tourist facilities. In doing so, he said that work is also underway to grant property rights to stimulate agricultural production and encourage investment in that sector (See Cuba Briefing 21 July 2025).
Although not stated, the implication is that the concept of leasing property and land might soon be extended to foreign currency earning export-related investments beyond tourism. That is, if the hotels experiment is considered a politically and economically viable addition to Cuba’s socialist economy.
Under the new lease agreement Iberostar will be able to make its own decisions on issues ranging from who it employs, their salaries, catering, imports, and multiple other day-to-day management issues that were previously controlled by Cuba’s Ministry of Tourism and other Cuban entities, including the powerful military conglomerate GAESA of which Gaviota is a part.
Significantly from a business perspective the agreement enables Iberostar to strengthen the hotel’s offering and operations; develop strategic alliances; reposition its marketing, branding, and image internationally; align its Cuban operations with those of the global Iberostar brand; and enhance its competitiveness. According to Cuban reporting, it will also allow for asset renewal, the incorporation of innovative technology, sales optimisation, operational strengthening, financial modernisation, the development of a robust marketing and communications strategy, and a firm commitment to talent development .
From a Cuban Government perspective, the new arrangement is expected to bring in much needed foreign exchange, initially in the form of rental income from the property. It is also intended to enhance tourism earnings on the basis that the hotel’s operator will upgrade their Cuban offering by independently delivering the hospitality levels visitors expect, and by financing the 80% of imported inputs the hotel’s operation requires.
Iberostar Cuba Hotels & Resorts has eighteen four- and five-star hotels located in Cuba’s main tourist destinations, and it is expected that if the new approach proves viable it will seek to establish similar arrangements for its other properties.
The financial structure of the lease agreement has not been revealed. However, reporting on the new policy, the Spanish news agency EFE noted that if the pilot programme with Iberostar is successful it is expected to be extended to other properties operated in Cuba by various major international hotel chains. It reported that the terms of each agreement will be separately negotiated with each chain and that “there appear to be no common scales for setting the rent or fixed fees.”
Up to now hotels owned by GAESA managed by foreign investors were required to follow official guidelines, often having to seek state approval for multiple operational issues including purchases, who to employ and the wages to pay at levels established by the Cuban state in CUP.
Tourism remains a major source of foreign currency for Cuba. However, arrivals numbers are in decline, with around 1.8mn visitors now expected this year compared with the 2.6mn MINTUR had planned for. By contrast, between January and July of this year, the Dominican Republic received almost 7.2m tourists, 3.2% more than during the same period last year.
Spanish chains presently operate seventy-one hotels on Cuba with a total of 27,679 rooms. Meliá another significant Spanish group have thirty-four hotels.
In April, letters of intent were signed by Gaviota with Chinese counterparts “for the negotiation of a lease” with Cubanacan for the Copacabana Hotel in the Miramar district of Havana, according to Granma. Russia’s Cosmos Hotel Group recently announced it will operate the five-star Sierra Cristal resort hotel in Holguín province (Cuba Briefing 20 October 2025). As reported under Russia below, discussions are also underway to encourage Russian businesses to invest in and operate hotels in Cuba.
Photo Reference: Iberostar Origin Laguna Azul hotel in Varadero (Tripadvisor)
27 October 2025, Issue 1299
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