Trading Update - Melia ceases operations in Cuba
Ceiba Investments Limited
22 July 2026
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED ("UK MAR"). ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
CEIBA INVESTMENTS LIMITED
("CEIBA" or the "Company")
(TICKER CBA, ISIN: GG00BFMDJH11)
Legal EntityIdentifier: 213800XGY151JV5B1E88
TRADING UPDATE
Melia Hotels International S.A. terminates its operations in Cuba
On 21 July 2026, Melia Hotels International S.A. ("Melia") announced that it had taken the decision to terminate all of its hotel management and commercialization services in Cuba, and to disallow the use of the Melia brands and access to its services in Cuba, effective from 24 July 2026.
This decision includes, and has an immediate impact on, the 5 hotels in which CEIBA has an interest. CEIBA invests in Cuba's tourism sector and participates in Miramar S.A. ("Miramar") and TosCuba S.A. ("TosCuba"), two Cuban joint venture companies that own 5 hotels in Cuba that are all operated by Melia.
On 1 May 2026, the U.S. President issued Executive Order 14404 ("EO 14404") expanding U.S. sanctions against Cuba, in this instance targeting the activities of foreign entities that invest in or otherwise materially support the government of Cuba. Under the authority of EO 14404 additional sanctions were, amongst others, imposed on Grupo de Administración Empresarial S.A. (GAESA), and as a direct result of GAESA (and its tourism branch, Grupo de Turismo Gaviota) being targeted by U.S. sanctions, Melia decided on 26 May 2026 to terminate management operations for 15 of its 34 hotels in Cuba with the decision officially announced and implemented in early June 2026.
Notwithstanding the fact that the announcement made by Melia cites operational, legal, economic, and financial difficulties as the primary reasons for concluding its operations in Cuba, it seems evident that the recent designation of the Ministry of Tourism under EO 14404 played a role in this decision.
The Company is presently analysing Melia's unilateral decision and what actions and steps need to be taken to properly unwind Melia's management and commercialization of the hotels, whose names will in the meantime be renamed "Hotel Habana", "Hotel Las Americas", "Hotel Varadero", "Hotel Palmeras" and "Hotel Trinidad Peninsula". The results of this analysis may include the suspension of operations of the hotels to focus instead on carrying out capital expenditure projects and other investments, the improvement of corporate and operational structures, and a strategic search for an operator to manage the hotel properties in which the Company is invested.
Given the fact that the occupancy levels of the hotels have already deteriorated severely in recent past months as a result of diminished airlift to Cuba and other factors, it is expected that the additional negative impact on projected income and results for the current year for CEIBA will be minimal.
Management and the Board of Directors of the Company are closely monitoring events and consulting with advisors and other stakeholders to assess the potential implications of these events and actions and will provide further updates if and when required.
For further information, please contact:
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Sebastiaan Berger
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Via NSM Funds Limited |
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Singer Capital Markets James Maxwell / Patrick Weaver (Corporate Finance) Sam Geatrex (Sales) |
Tel: +44 (0)20 7496 3000 |
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NSM Funds Limited |
Tel: +44 (0)1481 743030 |
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