Cuba: Skin in the game

As the recent inroads of Starwood and Warwick in Cuba have taught us, management contracts can have different implications in some markets. 

In order to be able to successfully replicate a hotel brand’s physical product standards and service levels, we need to be able to control FF&E and capex programs, F&B provisioning, staff recruiting and staff training. In most world markets these factors are under the control of the operator within the framework provided by management contracts. However Spanish companies, such as Meliá International, have become extremely successful in Cuba by doing exactly the opposite: taking an equity position in the property and in the operating company.

Today forming a JV in Cuba is the legal framework that will truly allow us to control our product delivery.

Hotel Nacional, Havana, Cuba
Hotel Nacional, Havana, Cuba