Starwood Hotels announces Cuba deal
Starwood Hotels & Resorts Worldwide has signed three new hotel deals in Cuba, marking the first US based hospitality company to enter the market in nearly 60 years. The announcement follows receipt of authorisation from the US Treasury Department for Starwood to operate hotels in Cuba.
Long-time Havana icon, Hotel Inglaterra, will join The Luxury Collection and Hotel Quinta Avenida will become a Four Points by Sheraton. Both hotels will undergo renovations before raising their new brand flags later in 2016; with the company also announcing that it has signed a Letter of Intent to convert the famed Hotel Santa Isabel into a member of The Luxury Collection.
Thomas B. Mangas, Starwood’s Chief Executive Officer, comments: “Starwood’s history of creativity, innovation, sustainability and being a first mover is core to who we are and what has made us a formidable competitor in the industry with a long, global lead. I am proud of our team who worked tirelessly to make today possible. With Cuba’s rich history, natural beauty and strong culture, there is no question the entire US hospitality industry has watched Cuba with great interest, and we are thrilled to lead the charge and bring our sophisticated, high-end brands into the market at this inflection point.”
Kenneth S. Siegel, Starwood’s Chief Administrative Officer and General Counsel, adds: “We are confident Starwood is the right partner to help write the next chapter of relations between Cuba and American business, and we moved quickly and enthusiastically to pursue opportunities following recent government actions. As we’ve seen throughout the world, our entry into new markets has a positive effect on local communities, preserving and protecting the culture and delicate ecosystems while improving employment opportunities, which were driving forces in our discussions.”
Jorge Giannattasio, Starwood’s Senior Vice President and Chief of Latin America Operations, remarks: “We are excited to add this sought-after destination to our growing Latin American and Caribbean portfolio, and offer our loyal guests more choice in this evolving market. Hotel conversions, like those we announced today, allow us to preserve history, architecture and culture while offering a unique branded experience. With our long-standing, locally based and highly experienced team in Latin America and the Caribbean, we look forward to welcoming guests to Cuba for many decades to come.”
Starwood has partnered with owner Gran Caribe to rebrand the renowned Hotel Inglaterra as a member of The Luxury Collection. Upon completion of the preservation and conversion projects later this year, the hotel will offer 83 guestrooms and reopen under The Luxury Collection banner. Meanwhile, the group has signed an agreement with Grupo de Turismo Gaviota S.A.,owner of Hotel Quinta Avenida in Havana’s Miramar district, to rebrand the hotel as Four Points by Sheraton Havana later this year. And finally, the company has signed a letter of intent with Habaguanex, owner of the famed Hotel Santa Isabel, to convert the 19th century colonial-style palace to a member of The Luxury Collection, pending U.S. Treasury Department approval.
Keith Grossman, Senior Vice President and Deputy General Counsel of Starwood, concludes: “Through our discussions and due diligence, it became clear that Starwood was the right choice for its unique approach to hospitality, sustainability and design that would enrich the local communities and enhance the guest experience. We plan to cultivate local talent, provide career enriching opportunities, and locally source art, décor, food, and materials to ensure we deliver authentic experiences.”
Starwood was advised by D17 Strategies, a consulting firm providing strategic counsel to clients seeking to carry out Cuban trade, investment, travel, and exchanges permitted under new U.S. regulations.
