News about cuban tourism

Swiss chain Kempinski to run Major Cuban Hotel

Swiss chain Kempinski to run Major Cuban Hotel
The hotel rebuilt by Gaviota SA Tourism Group at Gomez block, in this city, will operate under the management of Swiss chain Kempinski, which luxury services are spread all around the world.

Authorities of Cuban Ministry of Tourism (MINTUR by its Spanish acronym) confirmed the news to the press in a meeting where details of the new business opportunities in the sector, included in the Act 118 of Foreign Investment, were offered.

The hotel, currently under rehabilitation, is scheduled to open in 2016 and will be a five-star luxury facility with over 200 rooms.

Still unnamed, the complex will be devoted to a high standard segment and will be managed by Kempinski, although investment-including a large mall- is one hundred percent by Cuban state, Frank P. Oltuski, Gaviota SA Marketing VP, told Granma International newspaper, Oltuski noted that 87 percent of the rooms will be managed by foreign hotel chains such as Meliá Hotels International, Blue Diamond and Pestana.

They own in Havana 297 rooms, number that will increase with the addition of this new hotel and two others - the one in the corner of Prado and Malecon Streets and the ancient Packard, which will be open in 2017, the manager added.

About the opportunities offered by this new legal framework for foreign investment in Cuba, José R. Daniel, MINTUR Business Director, remarked the inclusion, within the mode of international economic association contracts, of hotel management; not covered by the repealed Act 77 of 1995.

This type of partnership has the particularity now of permitting financing by the foreign party, i.e., the investor is allowed to invest on repair the facilities he is operating, Daniel said.

The measure is doubtless an endorsement of the national interest in recovering many tourist buildings damaged after years of operation without maintenance actions.

To date, Cuba has 64 hotel management contracts with about 20 internationally renowned chains; and expects to end 2014 with nearly 70.


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