U.S. Hotel Chains Circle Cuba as Visitors Surge, Restrictions Ease

Executives from major U.S. hotel chains have stepped up their interest in the island in recent months, holding informal talks with Cuban officials as Washington loosens restrictions on U.S. firms operating there.

Executives from Marriott International, Hilton Worldwide and Carlson Hospitality Group, which runs the Radisson chain, are among those who have held talks with Cuban officials in recent months, they told Reuters.

"We're all very interested." said Ted Middleton, Hilton's senior vice president of development in Latin America. "When legally we're allowed to do so, we all want to be at the start-line ready to go."

The United States and Cuba restored diplomatic relations in July after decades of hostility. Washington chipped away further at the half-century-old trade embargo this month, allowing certain companies to establish subsidiaries or joint ventures in Cuba as well as open offices, stores and warehouses in Cuba.

The United States wants to strike a deal that lets U.S. airlines schedule Cuba flights as soon as possible, a State Department official said last week, amid speculation that a U.S. ban on its tourists visiting Cuba could be eased.

U.S. hoteliers are not currently allowed to invest in Cuba, and the Caribbean island officially remains off-limits for U.S. tourists unless they meet special criteria such as being Cuban-Americans or join special cultural or educational tours.

Foreign companies have to partner with a Cuban entity to do business and U.S. hoteliers expect they will have to do likewise if and when U.S. restrictions are lifted.

While they wait for the politicians to iron out their differences, U.S. hotel bosses are conducting fact-finding missions in Havana and holding getting-to-know-you meetings with government officials in Cuba and various European cities.

This week, Middleton, along with executives from Carlson and Wyndham Worldwide Corp., which runs the Ramada chain, are meeting with Cuba's Deputy Tourism Minister Luis Miguel Diaz at an industry conference in the Peruvian capital, Lima.

In the 1950s Cuba was an exotic playground for U.S. celebrities such as Frank Sinatra and Ava Gardener, as well as ordinary tourists, who travel led there en masse on cheap flights and ships from Miami.

A recent relaxation of some of the restrictions on U.S. travelers has encouraged over 106,000 Americans to visit Cuba so far this year, more than the 91,254 who arrived in all of 2014, according to data compiled by tourism professor José Luís Perelló of the University of Havana.

Overall, tourist arrivals are up nearly 18 percent this year after a record 3 million visitors in 2014, making Cuba the second-most popular holiday destination in the Caribbean behind the much-smaller Dominican Republic.

Source: Reuters