Global Update
Next stop
The Hotel Nacional de
Cuba in Havana is the icon of the country ’ s hospitality business .
How long will it be before American brands take their place on the skyline ?
When Cuba opens to American brands ,
Cubanumerous challenges await .
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When President Obama announced that the U . S . and Cuba were restoring diplomatic relations this past December , U . S . hotel companies took notice . Then in January , the U . S . Departments of Commerce and Treasury released new rules allowing U . S . citizens to visit Cuba without special permits .
While most U . S . -based hotel companies will not publicly talk about how they are preparing for a potentially big development opportunity , a few industry experts have shared their views .
“ There will be strong expectations ,” says Steve Joyce , CEO , Choice Hotels International , Rockville , Maryland . “ Miles of untouched real estate will become incredibly competitive and we want to have properties underway as soon as possible after the trade embargo is lifted and the door is truly open .”
Challenges to entry Alex Zozaya , CEO of Apple Leisure Group , Philadelphia , says that building a presence in Cuba presents several multifaceted challenges .
“ If U . S . hotel companies were able to do business freely , then the challenge would only be time ,” Zozaya says . “ In Cuba , there is a need to improve infrastructure for them to take care of the high-end market coming from the U . S . If the doors truly open , alternatives for financing should and would increase .”
Ivar Yuste , founding partner of consultancy PHG Hotels & Resorts , Madrid , says U . S . hotel companies will have to build a supply pipeline in Cuba . Given that hotel supply is currently government-owned , foreign companies face obstacles when hoping to develop in Cuba . This task can take months or even years , Yuste says .
Joyce anticipates there will be development challenges and competition in Cuba . “ It will be important to show Cuban investors and owners that the Choice Hotels franchise has achieved great success developing in the Caribbean and we are committed to
12 HOTELS March 2015 www . hotelsmag . com