Gabriel Escarrer, CEO of Meliá Hotels International, minimized the financial impact of the company's permanent exit from Cuba during the presentation of the first half of 2026 results, as reported by the tourism portal Reportur.
Escarrer emphasized that the "positive evolution of the underlying business reinforces our belief that this is a one-time impact with no effect on cash flow," advocating for a business strategy focused on "value rather than volume," supported by a greater emphasis on premium and luxury segments.
Accounting Hit Doesn't Mirror Business Health
The figures for the semester show a seemingly contradictory picture: the consolidated net profit plummeted to 4.1 million euros due to an extraordinary provision of 79.4 million made to cover balances and assets linked to the island, which the company considers uncertain to recover.
Without this exceptional adjustment, the net result from continuing operations would have reached 83.4 million euros, consistent with previous years.
The group's management framed it as a cautious decision:
"The conservative provisioning of all Cuban balances and assets whose recovery is currently unpredictable has a significant impact on the fiscal year's accounts but contributes to strengthening the group's balance sheet's solidity, transparency, and credibility."
Operational Business Thriving
Beyond the Cuban impact, operational indicators show an expanding chain: consolidated revenues grew by 7.1% to 1,047.4 million euros, and EBITDA increased by 2.5% to 244.7 million.
The average revenue per available room (RevPAR) soared by 11.7% in the semester and 14.2% in the second quarter alone, while direct channel sales advanced by 12%.
Bookings for the second half are double-digit above the previous year, leading the company to maintain its forecast of a minimum EBITDA of 565 million euros in 2026, with at least 40 new hotel signings and about 30 planned openings.
End of a 36-Year Era in Cuba
The departure from Cuba was a phased process that concluded on July 24 with the closure of the 34 hotels the chain managed on the island through its Portuguese subsidiary Ilha Bela Gestão e Turismo, ending 36 years of uninterrupted presence.
The process began when Executive Order 14404, signed by Donald Trump on May 1, 2026, designated the Cuban military conglomerate GAESA as a sanctioned entity.
On July 13, the Trump administration extended sanctions to the Cuban Ministry of Tourism and nine additional state entities, eliminating any legal margin to continue operating.
Meliá wasn't alone in leaving: Iberostar, Barceló, and Blue Diamond Resorts also exited Cuba during this period. The chains that left controlled more than 30,000 of the 86,559 available rooms on the island, 35% of the total, and losses for Spanish companies are estimated between 80 and 100 million euros.
Markets Relieved
Financial markets welcomed the exit with relief. Banco Sabadell had described the presence in Cuba as "a source of uncertainty that had been penalizing the group for years," and Deutsche Bank maintains Meliá as its only buy recommendation among European hotel chains, with a price target of 13 euros per share.
Escarrer did not rule out a potential return: when asked if Cuba has a tourism future, he responded emphatically: "I believe it does, without a doubt."
Frequently Asked Questions About Meliá's Exit from Cuba
Why did Meliá exit Cuba?
Meliá exited Cuba following increased sanctions from the Trump administration, which targeted Cuban military and state entities, leaving no legal margin to continue operations.
What is the financial impact of Meliá's exit from Cuba?
The exit resulted in an extraordinary provision of 79.4 million euros to cover uncertain balances and assets tied to Cuba, significantly impacting the company's consolidated net profit.
Will Meliá consider returning to Cuba in the future?
Meliá's CEO, Gabriel Escarrer, did not dismiss a future return, expressing confidence in Cuba's potential as a tourist destination.