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“ As long as Americans can still come , it ' s still OK ,” says John Flood of the recent U . S . clampdown on business in Cuba . Easy for him to say : He ’ s president and CEO of Jakartabased Archipelago International , which this year signed a management contract with Gaviota , the hotel development arm of the Ministry of Defense , for a 430-room , newbuild hotel .
The policy reversal still allows American companies to contract with other Cuban agencies . For European and Asian concerns , such as Kempinski , which recently opened
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the luxe Gran Hotel Manzana Kempinski La Habana , it ' s business as usual .
The Cubans “ were looking for an Asian operator that was used to dealing in developing countries rather than European or American groups ,” Flood says . Archipelago , with 131 hotels open and 90 in the pipeline , primarily in Indonesia , fits that bill . The contract is for a 5-star Grand Aston brand expected to open in December 2019 in Varadero , east of Havana . Flood says Gaviota didn ’ t ask for , and didn ’ t want , a financial stake . “ They just want our expertise
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and our sales and marketing systems and strategies .”
American companies might be careful what they wish for . A management agreement versus a JV or development deal means the Cubans supply food , furnishings , uniforms and just about everything else . “ You don ’ t have a lot of say in what it is ,” Flood says . There is little to no pull in hiring staff , giving bonuses , sourcing produce and
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equipment . Infrastructure – physical and technological – needs work . And while U . S . tourists must travel with organized groups , the country must do it fast and do it right , wherever tourists are coming from . According to STR , Cuba has six hotel projects in various stages of planning and construction totaling 3,324 keys .
“ The Cubans are working hard and doing a great job , but
A view of Old Havana from the Kempinski ' s rooftop pool
they still need three or four years to get up to speed where they can properly cater to such a big increase and the more demanding U . S . traveler , and ensure they become return visitors and not just disgruntled one-time visitors ,” Flood says , adding a prediction : “ In four years , Trump will probably be gone , and hopefully the next president will bring back Obama ’ s good intentions and be more open to working with Cuba .”
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