Canadian Hotel Operator Blue Diamond Resorts Leaves Cuba
and returns hotel management to the military
The Spanish company Iberostar is reportedly under strong pressure from the United States to suspend its activities.
HAVANA TIMES — The Canadian hotel company Blue Diamond Resorts, one of the principal foreign operators in Cuba’s tourism sector over the last decade, will cease its operations on the Island “with immediate effect,” according to an official statement released this Saturday by the wholesale tour operator Sudameria Travel. At the same time, sources within the travel industry report that Spain’s Iberostar is facing intense pressure from the United States to suspend its activities in Cuba in order to avoid sanctions from Washington.
“As of this date [May 30], future reservations, inquiries, and coordination will be handled directly by the respective hotel owners and/or the corresponding local operating entities,” the announcement states.
The properties will now be administered by Gaviota, a company that forms part of Grupo de Administración Empresarial S.A. (GAESA), the Cuban military conglomerate controlled by the Armed Forces. 14ymedio confirmed this by contacting several Havana hotels previously managed by Blue Diamond under various names: the Royalton Habana Paseo del Prado, the Inglaterra, and the Regis Mystique. At the latter, staff could not confirm whether the hotel would remain open.
The move affects all operations associated with the brands Blue Diamond Resorts Cuba, Blue Diamond Cuba, Royalton, Memories, Starfish, Mystique, and Resonance, which will no longer be involved in the management or marketing of tourist establishments on the Island. The official websites of Blue Diamond Resorts, Memories Resorts, and Royalton Resorts in Cuba are currently inaccessible.
The company attributes its withdrawal to “the current conditions of the Cuban tourism market and the persistent operational limitations affecting the destination, including logistical, infrastructure, and supply challenges.”
Although the company does not mention the recent US sanctions against the military conglomerate GAESA, the decision comes just three weeks after Washington included the Armed Forces business group in a new round of economic sanctions. The US State Department also warned that any foreign company maintaining business relations with sanctioned entities could be exposed to restrictive measures.
Earlier this month, the reopening of three Blue Diamond-managed hotels in Varadero had been announced. The Canadian company manages the majority of its 11,139 rooms on the Island located in Varadero. The move appeared aimed at taking advantage of the summer season and attracting part of the domestic market as well as Cubans living abroad. The Royalton Hicacos Resort, Resonance Musique, and Resonance Blue Varadero continue to offer summer bookings, though they are no longer being managed by the Canadian company.
The decision comes weeks after Sunwing Vacations Group, owner of the hotel chain, temporarily suspended its vacation packages to Cuba. On April 15, following fuel shortages on the Island and the cancellation of all flights from Canada, the agency announced the suspension of all its Cuba vacation programs for the summer 2026 season. The measure affected operations from all Canadian airports to Varadero and Cayo Coco between June 20 and October 9.
Blue Diamond has not publicly confirmed the decision nor issued an official statement to customers or the media.
Canada remains the leading source of tourists to Cuba. In 2025, approximately 754,000 Canadian visitors traveled to the Island, a 12.4% decline from the previous year, according to official Cuban figures. This deterioration has accelerated in 2026. Between January and April, foreign visitor arrivals fell by 55.8% compared to the same period the previous year. The energy crisis, blackouts, supply shortages, and reduced air connections have forced numerous hotel chains to close facilities or concentrate operations in a limited number of hotels.
Blue Diamond had been one of the few exceptions. Since the pandemic, it had steadily expanded its presence on the Island through agreements with Gaviota, Cubanacán, and Gran Caribe. It even obtained exclusive management rights for the tourist destination of Cayo Largo del Sur, an unprecedented position for a foreign company in Cuba. It was negotiating to manage additional properties and become the Island’s largest hotel group, surpassing Meliá, which manages 34 luxury hotels and 14,000 rooms.
First published in Spanish by 14ymedio and translated and posted in English by Havana Times.