Starwood Hotels & Resorts moved quickly to become the first U.S. hotel company to sign a deal with Cuba since its 1959 revolution. Starwood announced last month it will make a multimillion-dollar investment in the country following special permission from the U.S. Treasury Department. Such deals are otherwise prohibited under the U.S. economic embargo of Cuba.
Starwood, which just inked a $13.6 million deal to purchase Marriott, will manage and market two properties in Havana and intends to operate a third.
Jorge Giannattasio, chief of Latin American operations, Starwood Hotels & Resorts, said the deals included a “multimillion-dollar investment to bring the hotels up to our standards.”
The deal makes Starwood the first U.S. company to operate on a large level since the 1959 revolution that instituted a Communist government and nationalized the tourism industry.
Starwood is taking advantage of new opportunities in Cuba’s booming tourism industry, which is benefiting from a rolling back of restrictions by the United States. International visits were up 17 percent to 3.5 million in 2015, setting a record. There was also a 77 percent increase in American visitors last year, though that number remains relatively small, at just 161,000. Those numbers are expected to continue to climb, with new direct flights from the United States and further relaxing of restrictions.
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