Key facts
- Cuba defends its military-run conglomerate GAESA, stating it contributes to economic and social development.
- The U.S. accuses GAESA of hoarding profits for the military and Cuban elite.
- The U.S. has increased sanctions on Cuba, impacting its resources.
- Several hotel companies are withdrawing from GAESA-linked hotels due to U.S. sanctions.
- Blue Diamond Resorts will exit Cuba, while Iberostar will continue managing non-GAESA-tied hotels.
Cuba's government has publicly defended its military-run conglomerate GAESA, asserting its contribution to the nation's economic and social development. This defense occurs as the U.S. administration intensifies sanctions, aiming to curb GAESA's alleged profit hoarding for the military and elite, thereby restricting Cuba's resources. Outside estimates suggest GAESA controls 40% to 70% of Cuba's economy, including many five-star hotels. In response to the sanctions, hotel companies like Blue Diamond Resorts and Iberostar are severing ties with GAESA-linked properties, with Blue Diamond planning to exit Cuba entirely.