Cuba to open La Habana luxury hotel towers over Havana despite tourism downturn

It’s hard to overlook the towering presence of the Selection La Habana hotel, the tallest building in Havana, rising 150 meters (490 feet) above the city’s colonial architecture. With 542 luxury rooms and sweeping views of the city and the sea, the hotel is an impressive structure. Managed by the Spanish chain Iberostar, it is yet to be officially inaugurated.

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However, the hotel has already drawn significant criticism, not just for its striking design, but for the government’s decision to allocate millions of dollars toward luxury tourism. This move has raised concerns among Cubans, especially as the country faces a deep economic crisis and a sharp decline in tourism, with visitor numbers hitting historic lows.

Like all hotels in Cuba, the new Selection La Habana is state-owned and operates under GAESA, a conglomerate controlled by the Ministry of the Revolutionary Armed Forces. GAESA has long been criticized for the lack of transparency in its operations. As a military-run entity, it is exempt from audits by the Comptroller General’s Office, and it has not revealed the amount invested in the construction of the 40-story hotel.

Situated near the historic Habana Libre hotel and the iconic Coppelia ice cream parlour, the new Selection La Habana hotel is part of a broader government initiative to develop a dozen luxury hotels, primarily in Havana. This ambitious project has continued even through the COVID-19 pandemic, despite existing luxury hotels largely remaining unoccupied.

Tourism has long been a vital pillar of Cuba’s economy, generating up to US$3 billion in annual revenue. However, Cuban authorities reported a sharp decline in tourism numbers in December 2024, with only 2.2 million tourists visiting the island—roughly 200,000 fewer than in 2023 and a stark drop from the 4.2 million tourists who visited in 2019.

The government attributes the tourism slump to a combination of factors, including supply shortages, an ongoing energy crisis with widespread blackouts, and a shortage of personnel caused by emigration and low wages. Additionally, Cuba continues to face a surge in US sanctions, including travel restrictions on US citizens, a ban on cruise ships, and other measures designed to hinder the growth of the country’s tourism industry.

Architects also expressed little enthusiasm for the new hotel, pointing at its disruptive appearance within the environment, its excessive height violating urban regulations, and tall glass windows that are ill-suited for a tropical climate.

 

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