Qatar Crisis and its effects on Hospitality & Tourism Industry

Who can imagine that a whole country's hospitality & tourism sectors could face a sudden borders-closure by its neighboring countries?

In early June 2017, 3 Gulf countries (Saudi Arabia, United Arab Emirates and Bahrain) + an Arab country (Egypt) decided to cut all ties with Qatar amidst a political crisis. They have decided to close all border, prevent their citizens to go to Qatar and asking Qatari citizens to leave their countries within 12 days. This decision came after prior political unsolved issues among the countries. However, it is believed that it is the biggest political crisis in the region since the Gulf War in 1990s.

Without referring to the political challenges, reasons and differences behind this, let's focus on the Hospitality and Tourism sector which was the largest 'looser' in this crisis. Beginning with the transportation; Qatar Airways, Skytrax first voted airliner, was banned to land or use these countries; airspace plus Yemen and Libya. Etihad Air, Egypt Air, Gulf Air, Emirates, flydubai, AirArabia, Saudi Airlines ... etc. all stopped their inbound and outbound flights to/from Hamad International Airport in Doha. Passengers travelling to and from Qatar, in addition to those travelling using Qatar airlines to Manama, Abu Dhabi, Dubai, Riyadh and Cairo ... etc were in a mess. They faced troubling days trying to sort out their flight arrangements. Luckily all airliners have re-routed their passengers although it took sometime to get out of the sudden shock they faced especially with Qatar Airways offices being closed in these countries. It has been reported that 30% of Qatar Airways flights were affected, and since it cannot use the airspace of its neighboring countries, it had to find longer alternative routed through Iran and Turkey, or Oman and the Arabian Sea to reach Europe, Africa and Asia, costing more fuel consumption and consequently, more surcharges to the airliner. Although the focus was on Qatar Airways, it is believed that all airliners of the Gulf were affected as well, albeit on a lower scale.

In terms of logistics, cargo, shipments and normal transportation across the land and sea borders, the same story was repeated except for the international water that Qatari ships use. A huge disruption and long traffic congestion was seen in AbuSamra Border, the only land crossing point Qatar has to the rest of the world through Saudi Arabia. Food and raw materials supplies were hit as Qatar relied heavily on importing its needs from Saudi Arabia and United Arab Emirates, which affected the supplies in the country.

Several reports have been published on the Qatar World Cup 2022. Construction which relied on materials arriving by land was said to have been affected. Around 5 countries were reportedly writing to FIFA to reconsider its decision of the 2020 host.

In terms of tourism, Qataris which relied on visiting Bahrain and Dubai by land for their short holidays such as Eid, now faced a challenge of either staying home or deciding to go on longer journeys by air.

On the bright side, and since this is an educational exchange online spot, let's discuss what opportunities were extracted from this crisis.

Qataris increased their sea ports' potentials and doubled or perhaps troubled their daily sea shipments to/from Omani ports in a way to ease the economic sanctions. Now it is believed that materials come to Hamad port in Qatar through Sohar's port in Oman. Iranian officials also announced that 3 southern ports will be available to Qataris whenever they asked for them.

Qatar Airways started leveraging its strengths by launching new destinations. Now this airliner got approvals and necessary licences to accelerate its flights from/to Sohar Airport, a new Omani airport established in the city of Sohar, very close to the east of United Arabi Emirates (esp RAK emirate). This means that the airliner is expanding regardless of the embargo.

Moreover, as British Airways underwent a strike from its employees, Qatar Airways took this opportunity to rent its jets supposedly with the crew to BA, in a win-win situation with possibly the losers of this business deal being the strikers, are they?

Many Qatari Hotels and Restaurants promoted their services to Kuwaitis and Omanis free of charge, in an attempt to increase inbound Gulf tourism and strengthen socio-cultural ties with the only 2 remaining countries in the Gulf which did not cut ties with Qatar.

On another side, Turkey and Iran started supplying Qatar with perishable goods, such as fruits and vegetables in addition to diary products and poultry. Qataris started campaigning their citizens to buy national products while the national companies started operating on their maximum scale, and even expanding further. Qatari authorities started the largest livestock airlift, perhaps in the history of mankind, by importing thousands of cows and sheep by 'air'! This shall address the shortages of diary products and certainly meat in the coming months and years, perhaps for Qatar to be self dependent by 2022 and further!

So dear readers, who said politics has nothing to do with hospitality and tourism?


Links:

http://www.businessinsider.com/qatar-airways-saudi-arabia-uae-ban-2017-6

https://www.usatoday.com/story/travel/flights/todayinthesky/2017/07/03/british-airways-rents-qatar-air-jets-help-through-cabin-crew-strike/447522001/

http://www.telegraph.co.uk/news/2017/06/11/iran-sends-five-planes-vegetables-qatar/

http://money.cnn.com/2017/07/12/news/qatar-flying-cows-milk-shortage/index.html

http://www.independent.co.uk/travel/news-and-advice/qatar-airways-doha-airport-diplomatic-incident-flights-affected-empty-planes-is-it-safe-a7843311.html

This is what happens when Hotel clerks are not culturally educated!

One of the most important aspects of hotel employees is to understand different cultures in which it shall enable them to receive guests from around the world, welcome them and attend to their needs. The duties shall extend to understand different traditions, languages, and costumes, oh yeah!! Costumes.

What happened in Fairfield Inn and Suites owned by Marriot is really a shameful incident for the brand! The brand's training plans are indeed questioned!

A man with his traditional gown or dress, booking in the hotel legally and talking on his cell at the Lobby, made the hotel clerk call her family and informing them that this guy is paying allegiance to ISIS. The family calls 911, and Police handcuffs him, search him until they find he is wrongfully accused! Yet, it was too late, as the man passes out especially that he is a medical tourism, coming to the US seeking treatment.

Political, public and media consequences are chasing the hotel and police, where the US deputy ambassador to the UAE has been summoned. Follow the links below:

The Incident
 https://www.youtube.com/watch?v=m0AnvrIOu8Q

The tourist hospitalized
 https://www.youtube.com/watch?v=u2768WqQ78w

Avon Police apologise
 https://www.youtube.com/watch?v=0vCjewc1Suw


News Coverages
 http://gulfnews.com/news/uae/general/uae-summons-us-deputy-ambassador-1.1856807
 http://edition.cnn.com/2016/07/03/us/ohio-false-isis-report/
http://www.nytimes.com/2016/07/04/world/middleeast/emirates-issues-travel-warning-after-man-in-robe-is-mistaken-for-isis-terrorist-in-ohio.html?_r=0
http://www.aljazeera.com/news/2016/07/man-confronted-police-false-isil-accusation-160702164032829.html

Russian 11-Year-Old Flies to St.Petersburg Without a Ticket

Andrei Makhonin / Vedomosti

An unaccompanied 11-year-old girl slipped through security checks at Moscow's Vnukovo airport and flew to St.Petersburg without a ticket or ID, according to Russian media reports.

The girl said that she had never flown by plane before and decided to go into Vnukovo after school where she mingled with crowds, passed the security checks and managed to get onboard a plane, according to the newsru.com website.

The girl reportedly appeared to airport staff as part of a big family group of passengers, which included other children. As she boarded the plane, the girl said she told the flight attendant she was traveling alone and was not asked to present travel documents.

The 11-year-old said she was motivated by her desire to fly and to see St.Petersburg. However, the girl did not get to visit Russia's second city — she reached the arrival hall at the city's Pulkovo airport and stayed there until her parents called her mobile.

The airport staff then tracked the girl and handed her over to child services.

Both airports and the Rossiya airline now face an investigation into the incident and their security procedures. The girl's parents could also face a fine for negligence.

http://www.themoscowtimes.com/mobile/news/article/russian-11-year-old-flies-to-stpetersburg-without-a-ticket/567391.html

Air France won't force air hostesses to wear veil

A legislation in Iran requires women to wear headscarves abiding by the faith and respecting the culture, however, the article below shows how cultural and legal issues affect the hospitality industry, i.e. Airlines.

Air France has moved to defuse a growing dispute by agreeing to make an exception for those hostesses and female pilots who refuse to fly from Paris to Tehran because they don't want to wear the veil.

France's national carrier has found a compromise agreement with unions after staff complained about having to wear the veil when on flights to Tehran, when they resume on April 17th.

The unions say company chiefs sent staff an internal memo saying that female cabin crew will be required to wear trousers during the flight with a loose fitting jacket and that they must put on a scarf covering their hair when they leave the plane.

Flore Arrighi of the Unac union said before the meeting that she was expecting the airline's head of human resources, Gilles Gateau, to come up with proposals to end the row.

The union says it wants the Tehran flights to be staffed on a voluntary basis and that any staff who refuse to fly to Iran due to the headscarf rule will not have pay deducted and the refusal will not be noted on their professional record.

And after the meeting it appeared that a compromise had been found with Air France declaring "an exception would be made".

Unac's Arrighi said: "We've been complaining to them for weeks but it took the media attention for things to move."

The headscarf rule is already in place when flying to certain destinations, such as Saudi Arabia.

An escape clause was also already in place for flights to Conakry in Guinea during the Ebola crisis last year and for services to Tokyo following the 2011 Fukushima nuclear disaster.

Caroline Rolland of the CGT union said if Air France refused the unions' proposals, cabin crew members will bend the rules by taking the day off claiming they have a sick child, or that they themselves are ill. In that case they would lose a day's salary.

"That's the price to pay for refusing," she said.

Air France told AFP on Friday that all air crew were "obliged, like other foreign visitors, to respect the laws of the countries to which they travelled".

"Iranian law requires that a veil covering the hair be worn in public places by all women on its territory.

"This obligation, which does not apply during the flight, is respected by all international airlines which fly to Iran," the airline said.

The company's HR director ruled out however introducing the same kind of compromise for other flights including those to Saudi Arabia.

Air France suspended flights to Iran in 2008 but is resuming the service after international sanctions on the Islamic Republic over its nuclear programme were lifted.

http://www.thelocal.fr/20160404/air-france-comprises-on-forcing-female-staff-to-wear-veil

Air France flight attendants in uproar over order to wear headscarves in Iran

A number of female Air France cabin crew staff are resisting an airline ruling that they should wear a headscarf when outside the plane in Tehran, according to a union representative.

Multiple flight crew unions are fighting back against the ruling, with at least one reaching out to a government minister in the hope that they would intervene.

The headscarf requirement and clothing limitations are "true threats to their dignity", the Union des Navigants de l'Aviation Civile (UNAC) wrote in a letter to Laurence Rossignol, France's minister for women’s rights and families, on Friday.

Another union, Syndicat National du Personnel Navigant Commercial (SNPNC), also denounced the provisions in a statement, calling them "an attack on freedom of conscience and individual freedoms, and invasion of privacy".

Union representatives have asked Air France to make working on flights to Tehran voluntary for female crew members who do not want to wear headscarves, without repercussions related to pay or schedules.

Women are required to cover their hair in Iran, which of course is not the case in secular France, although conversely face-covering veils are banned in the latter.

Air France is set to resume service to Tehran on April 17 after an eight-year break. The service was initially cut as part of international sanctions related to Iran's nuclear programme. Following the 2015 nuclear deal struck between Iran, the US, France and several other countries, Air France announced it would once again fly to the tourist-hungry country.

Specifically, Air France's modesty rules require women to wear trousers during the flight from Paris to Tehran and a loose-fitting jacket and headscarf when they exit the plane. Those who don't comply could be penalised, said SNPNC spokesperson Christophe Pillet to Agence France-Presse (AFP).

“It is not our role to pass judgment on the wearing of headscarves or veils in Iran," Flore Ariighi, head of the UNAC told UK newspaper The Telegraph. "What we are denouncing is that it is being made compulsory. Stewardesses must be given the right to refuse these flights.”

Air France told AFP that the headscarf rule was not new. It was in place before service to Tehran was cut in 2008.

"Iranian law requires that a veil covering the hair be worn in public places by all women on its territory," the airline said. "This obligation, which does not apply during the flight, is respected by all international airlines that fly to Iran."

According to the union letter to the government minister, Air France also asked its female flight attendants to refrain from smoking in public. Male attendants were not given the same order.

Air France has not responded to Mashable's request for comment.

This article was first published by Mashable

http://www.france24.com/en/20160403-air-france-flight-attendants-uproar-over-order-wear-headscarves-iran

Terrorist Bombings Strike Brussels: What We Know

More than 30 people are dead and more than 200 wounded after explosions struck Brussels during the Tuesday morning rush hour, Belgian officials say. Two blasts hit the international airport; another struck a metro station. Belgium issued a Level 4 alert, denoting "serious and imminent attack."

"What we feared has happened — we were hit by blind attacks," Prime Minister Charles Michel said at a midday news conference Tuesday. At a later news conference, Michel said Belgium will defend its liberty and values, and he stressed the importance of returning to normal life in Brussels as fast as possible.

Hours after the blasts, Belgian federal police tweeted an image of a man suspected of being involved in the bombing, and asked the public, "Who recognizes this man?"



Wearing a jacket and hat, the man is seen in an image taken by a surveillance camera at the airport. Authorities say they are actively seeking him. The image is similar to a wider photograph of the same man alongside two other men, all three of them pushing luggage carts. Officials say that the other two men, both in black, may have acted as suicide bombers; Belgian media outlets have noted that each of them wears a single glove which, those outlets say, might hide a trigger for a bomb.

As of 4 p.m. local time, the Belgian Crisis Center reported that at least 10 people had died and 100 were wounded in the attack at the Zaventem airport, and that 20 people died at the Maelbeek metro station, where some 130 were wounded.

ISIS has claimed responsibility for the attacks, in a statement released via the Amaq News Agency, a group that's been linked to the militant extremists. The statement blames Belgium for participating in the fight against ISIS and says that "several" fighters detonated explosive belts at the airport and train station.

According to media reports, Belgian federal prosecutors say a house search later in the day, in the Brussels neighborhood of Schaerbeek, "led to the discovery of an explosive device containing among other things nails." Investigators reportedly also found chemical products and an Islamic State flag.

NPR's counterterrorism correspondent Dina Temple-Raston says that investigators have discovered additional detonators, ISIS flags and other such materials over the past week in raids across Belgium.

French President Francois Hollande said "terrorists struck Brussels, but it was Europe that was targeted — and all the world that is concerned."

The number of dead and wounded could rise, as Belgian emergency agencies are focused on responding to those in need. Information is still emerging about this attack, and some reports may later prove inaccurate. Here's what we know so far:



Brussels' Zaventem Airport

A suicide attacker struck around 8 a.m. local time, according to a federal prosecutor. The explosions hit near the departure gates, collapsing ceiling panels and shattering glass windows. The blasts sent smoke billowing from the airport and set off a panic as people ran from the airport with whatever they could carry.

A video from nearby in the terminal that's been aired on Belgian broadcaster VRT shows travelers cowering as dust and smoke fill the air and sirens blare. We'll warn you: The video contains a profanity and may be stressful to watch.

The facility was evacuated and closed, with emergency crews looking after the wounded and security personnel gathering any evidence that might provide details about those responsible.

The attack began after a burst of gunfire and yelling in Arabic, according to Belgian media outlets.

NBA Hall of Famer Dikembe Mutombo was at the airport. He shared a photo on Facebook and wrote, "God is good. I am in Brussels Airport with this craziness. I am fine."

Maelbeek Station

Around 9 a.m. local time, an explosion struck a metro train in or near the Maelbeek station, causing chaos close to the European Union headquarters in the city's center.

The station is about 7 miles from the airport. Images of the aftermath of that attack show people running for safety along the tracks through a darkened and smoke-filled tunnel, after trains were halted.

To clarify information that went out in an NPR news alert earlier this morning: There have been at least three explosions — two at the airport and one at a train station. An early report suggested there were three explosions on the subway.

Accounts From The Scene

Gabriele Steinhauser, a reporter with The Wall Street Journal who's in Brussels, relayed witness accounts to NPR's Morning Edition:

"Parts of the ceiling fell down. There was a lot of water from pipes breaking. People who were there during the explosions said there were scenes of chaos. It took about 10 minutes for security personnel to arrive. There were mothers with children and old people who didn't know what to do.

"People felt like the authorities were badly prepared, and when they were led out of the airport they were led right through the place where the explosions happened. People say there was a lot of blood."

The Response

Explosives teams from the Belgian army detonated a suspicious package at the Zaventem airport early in the afternoon — and the federal Zuidertoren (South Tower) building in Brussels was evacuated after suspicious items were found in an underground parking lot, according to the national crisis center and the national news service.

Brussels was placed under lockdown, with all its tunnels closed to traffic and children ordered to stay in school through most of the day. The public transit system was also shut down. By 4:30 p.m. local time, Belgium's Crisis Center says, some of those tunnels had reopened to traffic, and many trains had resumed running.

The general lockdown order was also lifted and children were allowed to leave school, but officials maintained the Level 4 threat warning, and urged residents to be vigilant. They also said police and military forces will continue to bolster security in Brussels.

The city's main airport was closed for the day, and flights were rerouted to nearby cities. Eurostar train service between London and Brussels was also suspended.

Belgium's Crisis Center is urging residents not to use their phones, saying the system is saturated. Instead, they're asking people to rely on WiFi connections, text messages and social media to communicate.

Interior Minister Jan Jambon announced that Belgium will observe three days of mourning.

Beyond Belgium

Security officials in France and Germany are increasing their vigilance in the wake of today's attack, which follows five other violent attacks that have hit cities in Turkey, Africa and the Middle East in the past 10 days.

Today's attack also comes four days after Belgian and French police arrested Salah Abdeslam, a central suspect in the Nov. 13 attacks in Paris. As of Monday, authorities were still looking for his accomplices in that attack — including one man, Laachroui Najim, whose true identity was only recently revealed.

In Cuba, President Obama prefaced his public remarks with a mention of the attacks in Belgium, offering the support of the U.S. and saying, "This is yet another reminder that the world must unite ... in fighting against the scourge of terrorism."

At least one U.S. service member and his family were hurt in today's attack, NPR's Tom Bowman reports, citing officials with U.S. European Command. Tom says that no details are being released, with officials citing privacy concerns. The officials say the service member was stationed in the Netherlands.

The U.S. Embassy in Brussels urged American citizens to shelter in place Tuesday morning. European Union institutions were at an Orange alert level, with normal business suspended and restricted access.

Tonight, both the Eiffel Tower and the Brandenburg Gate will be lit in the black, yellow and red colors of Belgium's flag. And in London, the Belgian flag was raised alongside the Union Jack atop Downing Street this afternoon. Both are flying at half-staff.

In the U.S., officials and presidential candidates are also reacting to the attacks.

This is a developing story. Some things that get reported by the media will later turn out to be wrong. We will focus on reports from police officials and other authorities, credible news outlets and reporters who are at the scene. We will update as the situation develops.

http://www.npr.org/sections/thetwo-way/2016/03/22/471391497/what-we-know-terrorist-bombing-at-brussels-airport

FlyDubai plane crashes in Russia, killing all on board

Russian officials say plane carrying 62 passengers and crew crashed on landing in city of Rostov-on-Don.

At least 62 passengers and crew have died after a FlyDubai plane crashed during an attempted landing in the Russian city of Rostov-on-Don, Russian officials said.

A Russian investigative committee confirmed in a statement that all the people on board the plane, travelling from Dubai, were killed in the crash on Saturday morning.

"The aircraft hit the ground and broke into pieces," the committee said on its website. "According to preliminary data, there were 55 passengers aboard and seven crew members. They all died."

In a statement published on Twitter, the Dubai Media Office said 44 of the passengers were Russian, eight were Ukrainian, two were Indian and one was from Uzbekistan.

The plane was believed to be a Boeing 737 operated by Emirati airline FlyDubai, a budget airline with a new fleet of planes that started flying in mid-2009

Russia's state-run RT network tweeted a clip of what appeared to be a large explosion.

In a statement, Ghaith Al Ghaith, chief executive of FlyDubai, said, "We offer our deepest condolences to the families of the passengers and crew.

"Everyone at FlyDubai is in deep shock and our hearts go out to the families and friends of those involved. We don't yet know all the details of the accident but we are working closely with the authorities to establish the cause. We are making every effort to care for those affected and will provide assistance to the loved ones of those on board."

Boeing tweeted that it was gathering more information.

There was no immediate information on the cause, although some news reports suggested weather could have been a factor.

Al Jazeera's Hoda Abdel-Hamid, reporting from Moscow, said reports indicated that the plane was in the air for about two hours in between making an initial attempt to land, and the second attempt, when the plane crashed.

Vasily Golubev, the governor of the Rostov region some 950 kilometres south of Moscow, was quoted by Russian news agencies as telling local journalists the plane crashed about 250m short of the runway. 

The plane's flight path, as tracked by Flight Radar 24, shows that the plane made a number of turns near the Rostov-on-Don airport before the final attempted landing.

It is believed to be the first time a FlyDubai plane has crashed.

In January 2015, a FlyDubai passenger jet was shot at while approaching the Iraq capital Baghdad

An aviation official and a security official said at the time that two passengers were lightly injured when three or four bullets hit the body of the plane, but they were unable to specify the source of the gunfire.

FlyDubai, Emirates, Sharjah's Air Arabia and Abu Dhabi's Etihad were the first to suspend flights after the incident, in line with a directive from the United Arab Emirates' civil aviation authority.

t is not yet known what caused the plane to crash at the Rostov-on-Don airport [Sergei Pivovarov/Reuters]

FlyDubai began operating in 2009 and mostly uses Boeing 737 aircraft [File: Ali Haidar/EPA]

Turkey Istanbul bombing: Galatasaray v Fenerbahce postponed

Riot police were on alert outside the Turk Telekom Arena in Istanbul when news of the postponement was announced

A football match between two of Istanbul's top teams has been postponed for security reasons, Turkish authorities have announced.
The game was called off at short notice, a day after a suicide bomber killed four people in the city.
The Istanbul governor's office said the decision had been taken "after the evaluation of credible intelligence".
The bombing in Istanbul's main shopping street was blamed by the authorities on so-called Islamic State (IS).
Fans had already begun to arrive for the Fenerbahce-Galatasaray match at Galatasaray's Turk Telecom Arena when the announcement was made.


Disappointed fans did not welcome the postponement


People have been leaving flowers at the scene of the attack


President Erdogan has said terror groups are targeting civilians because they are losing their struggle against Turkish security forces

There were boos as supporters were left with no choice but to leave the ground.
The postponement came even though the authorities have repeatedly urged the 15 million inhabitants of Turkey's largest city to carry on with their normal daily lives after the blast.
Interior Minister Efken Ala meanwhile named the bomb suspect as Mehmet Ozturk, born in 1992 in Gaziantep.
He told reporters that five people had been questioned so far.

Mr Ala also announced a review of security measures in seven Turkish provinces following several attacks since July.

Three Israelis - two with Israeli-US nationality - and an Iranian were killed by the bomb attack. Another 36 were injured.

Eleven Israelis were among the injured. Two Irish citizens, one national each from Germany, Iceland, Dubai and Iran were also injured.

The coffins of the Israeli nationals were flown out on Sunday and the Israeli government has now advised its citizens to avoid Turkey.

Turkey is part of the US-led coalition against IS and allows coalition planes to use its air base at Incirlik for raids on Iraq and Syria.

It has been attacked by IS in the past - most recently in January when a suspected suicide attack in Istanbul killed 12 German tourists.

And more than 100 people died outside Ankara railway station in October 2015 when IS militants carried out a double bombing close to the headquarters of the national intelligence organisation.

Kurdish militants have claimed a number of recent attacks in Turkey.

President Recep Tayyip Erdogan has said terror groups are targeting civilians because they are losing their struggle against Turkish security forces.

Turkey had in the meantime launched a nationwide tightening of security ahead of the Kurdish spring festival of Newroz on Monday, an occasion traditionally used by Kurds in Turkey to assert their ethnic identity and demand greater rights.

http://www.bbc.com/news/world-europe-35857467

Starwood signs historic deals in Cuba for three Havana hotels

Another example when political tensions are released, the hospitality industry boosts. After decades of embargo since the Cuban revolution, Cuba and America has come to a new era and opened up for diplomacy, and Starwood's the American Hotel company has benefited.



By Steven Mufson

Starwood Hotels & Resorts inked deals in Cuba on Saturday night that will give it the management of three prestigious hotels in Havana, the first foray by a U.S. hospitality company into Cuba in nearly six decades.

Coinciding with the arrival of President Obama for his historic visit to Cuba, the Starwood agreements mark the further erosion of the U.S. trade embargo and a step toward normalizing relations between the two longtime foes.

Starwood has already won approval from the Treasury Department for two of the three agreements, a breakthrough in the loosening of the sanctions that will allow Starwood to do business, upgrade facilities, hire local workers and artisans, and conduct transactions in U.S. dollars through American financial institutions.

Starwood chief executive Thomas B. Mangas said in an interview that “it has been great to be at the forefront of this diplomacy” and that “we are very proud to bring our experience and to be a first mover” into Cuba.

The deals include the Hotel Inglaterra, a Havana icon that will become part of Starwood’s Luxury Collection, and Hotel Quinta Avenida, which will become a Four Points by Sheraton hotel. Both will undergo renovations before opening under their new brands later this year.

Starwood also announced that it has signed a letter of intent, pending a license approval from Treasury, to convert the Hotel Santa Isabel into a part of its Luxury Collection.

Mangas said that the three deals were “only the beginning” and that they leave open “the rest of the country.” He said Cuba “had huge attraction for U.S. consumers before the embargo started. I think it will have even greater attraction now.” He said the Stamford, Conn.-based Starwood already does half its business outside the United States, including a strong presence in Latin America.

The deals come amid a flurry of activity for Starwood, which is the target of two competing takeover bids. On Friday, Starwood said it would accept a $13.2 billion, $78-a-share offer from Chinese insurance company Anbang. But Marriott, which first bid for Starwood, has until March 28 to sweeten its own $68-a-share, $11 billion offer.

Marriott has also made overtures to Cuba about entering the tourism market there.

Although European hotel chains have invested in the nation, Cuban officials believe that the arrival of competitors from the United States will improve facilities and service throughout the tourism sector.


Starwood is planning to make structural as well as service changes including upgrading bathrooms, buying new air conditioning systems, upgrading fire safety systems, and adding creature comforts in renovated rooms.

But Mangas said Starwood would not alter the style of the hotels. “These are beautiful, iconic locations and buildings with a style and decor which is very indigenous,” he said. “That’s what our guests want.”

Keith Grossman, senior vice president and deputy general counsel of Starwood, said in a statement that the company plans “to cultivate local talent, provide career enriching opportunities, and locally source art, decor, food, and materials to ensure we deliver authentic experiences.”

The Inglaterra, which opened in 1875, is a national landmark near the historic district of Old Havana in the heart of downtown. Once the renovations are complete, the hotel will offer 83 luxury rooms.

The Cuban partner is Gran Caribe, which also owns the Hotel National, once a home to American mobsters and celebrities and designed by the same architect who designed the Breakers Hotel in Florida.

Starwood will turn the Hotel Quinta Avenida in Havana’s Miramar district into a Four Points by Sheraton Havana hotel later this year. The hotel will cater to business travelers with about 186 rooms and state-of-the-art meeting facilities.

The Cuban partner is Grupo Hotelero Gaviota. The Cuban military owns a large stake in the Gaviota group, an issue that gave the Obama administration pause. But the Cuban military has broad holdings, and avoiding it would severely limit U.S. investment and engagement.

Starwood also has signed a letter of intent with the Cuban company Habaguanex to convert the 19th century, colonial-style Hotel Santa Isabel, to a member of its Luxury Collection line. Overlooking Havana Harbor, the Santa Isabel lies in the heart of Havana’s historic city center, with 27 rooms, including 11 suites. Former President Jimmy Carter has stayed there twice since leaving office.

Starwood is planning to make structural as well as service changes including upgrading bathrooms, buying new air conditioning systems, upgrading fire safety systems, and adding creature comforts in renovated rooms.

But Mangas said Starwood would not alter the style of the hotels. “These are beautiful, iconic locations and buildings with a style and decor which is very indigenous,” he said. “That’s what our guests want.”

Keith Grossman, senior vice president and deputy general counsel of Starwood, said in a statement that the company plans “to cultivate local talent, provide career enriching opportunities, and locally source art, decor, food, and materials to ensure we deliver authentic experiences.”

The Inglaterra, which opened in 1875, is a national landmark near the historic district of Old Havana in the heart of downtown. Once the renovations are complete, the hotel will offer 83 luxury rooms.

The Cuban partner is Gran Caribe, which also owns the Hotel National, once a home to American mobsters and celebrities and designed by the same architect who designed the Breakers Hotel in Florida.

Starwood will turn the Hotel Quinta Avenida in Havana’s Miramar district into a Four Points by Sheraton Havana hotel later this year. The hotel will cater to business travelers with about 186 rooms and state-of-the-art meeting facilities.

The Cuban partner is Grupo Hotelero Gaviota. The Cuban military owns a large stake in the Gaviota group, an issue that gave the Obama administration pause. But the Cuban military has broad holdings, and avoiding it would severely limit U.S. investment and engagement.

Starwood also has signed a letter of intent with the Cuban company Habaguanex to convert the 19th century, colonial-style Hotel Santa Isabel, to a member of its Luxury Collection line. Overlooking Havana Harbor, the Santa Isabel lies in the heart of Havana’s historic city center, with 27 rooms, including 11 suites. Former President Jimmy Carter has stayed there twice since leaving office.

https://www.washingtonpost.com/business/economy/starwood-signs-deals-in-cuba-for-three-havana-hotels/2016/03/19/4eb2e9c6-ee1e-11e5-b0fd-073d5930a7b7_story.html