Archipelago International, South-east Asia’s largest privately owned hotel management group, has ceased operations in Cuba following a directive from the US Office of Foreign Assets Control (OFAC).
The move follows an order requiring the company to sever ties with military conglomerate GAESA, which controls a significant portion of Cuba’s economy and is subject to US sanctions.
The decision follows similar actions by hotel operators Blue Diamond, Meliá and Iberostar.
Prior to its exit, Archipelago International operated six Aston-branded hotels in Cuba with a combined inventory of around 3,500 rooms.
John Flood, president and CEO of Archipelago International, told TTG Asia: “We are naturally disappointed to be concluding our operations in Cuba after the significant time, effort, and investment we have made in the market over the years.”
He said the company had become one of Cuba’s most active international hotel operators, with its properties consistently ranking among the top performers for guest satisfaction. He added that the company had also trained hundreds of local hospitality professionals, many of whom progressed to senior management positions globally.
Flood praised Cuba’s tourism assets and hospitality workforce.
“Our decision should not be viewed as a reflection on Cuba itself. We remain hopeful that, in the future, the broader geopolitical and economic situation between Cuba and the US will improve. When that happens, we would certainly welcome the opportunity to return and contribute to the growth of Cuba’s tourism sector once again,” he said.
Beyond Cuba, Archipelago International is continuing its expansion across the Americas.
“From a regional perspective, our exit from Cuba has minimal impact on our broader expansion strategy across the Americas,” Flood said.
“Several years ago, we relocated our regional headquarters for the Americas from Cuba to Punta Cana, Dominican Republic, where it remains today. We also maintain an office in Mexico, both of which continue to support our development and operational activities throughout the region.”
The Caribbean, Dominican Republic and Mexico remain key growth markets for the group. Across the Dominican Republic and Mexico, Archipelago currently has 22 hotels in the development pipeline, representing more than 7,000 rooms.
“These projects span multiple brands and market segments, reflecting our long-term commitment to the region and our confidence in its tourism fundamentals.
“While we are saddened to leave Cuba, we remain optimistic about the future of tourism in the country and sincerely hope to have the opportunity to return one day.”
