Could Accor S.A. Of France Be Subject To Libertad Act Lawsuits?

On 24 June 2019, four (4) plaintiffs filed a lawsuit [1:19-cv-22620] seeking class action status in the United States District Court for the Southern District of Florida against seven (7) defendants.

The lawsuit is using Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”). Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.

At the bottom of page two of the twenty-page lawsuit, note 2 contains the following: “In accordance with 22 U.S.C. $ 6082(a)(3), the Angulo Cuevas Heirs have given notice to Accor S.A. ("Accor") of their intent to add Accor as a defendant to this lawsuit if they do not promptly compensate the Angulo Cuevas Heirs and the class for the unlawful trafficking of their property.” LINK To Lawsuit.

The notification process includes a letter and the target of the letter has thirty (30) days by which to respond. To date, neither the plaintiffs nor their attorneys and Accor S.A. have publicly confirmed that compensation has been received by the plaintiffs.

Issy-les-Moulineaux, France-based Accor S.A. (2018 revenues exceeded US$4 billion) manages two properties in the Republic of Cuba.

The company had managed two additional properties: 385-room Mercure Playa de Oro in Varadero from 2012 to 2017 and the 178-room Hotel Mercure Sevilla Havane in the city of Havana from 1995 to 2018.

The Playa de Oro Varadero is owned by Republic of Cuba government-operated Gran Caribe. Disagreement as to responsibility for financing for renovations resulted Accor S.A. returning the property to Gran Caribe. Accor S.A. had reported that the Hotel Mercure Sevilla Havane was to undergo a US$20 million renovation to become an MGallery by Sofitel property. Disagreement as to responsibility for financing resulted in Accor S.A. returning the property to its owner, Republic of Cuba government-operated Gran Caribe.

Pullman Cayo Coco Hotel (518 rooms)

The property of owned by Gran Caribe. Accor S.A. has managed the property since December 2015. From Accor S.A.:

“Hotels combining lifestyle and design, for business and leisure. All-inclusive 5-star resort facing the Caribbean Sea and ideally located in the hearth of the ecological park of the island of Cayo Coco. The resort has 2 sections: main hotel featuring 522 deluxe rooms and The Collection by Pullman adult only section offering junior suites, full suites and private Golden Villa. Our property offers a choice of 8 restaurants, 10 bars, 7 pools, 600-meter long private white sand beach, state of the art spa, Kids Club, banquet facilities and much more. Located off the Northern Cost of Cuba, on the Atlantic Ocean side, and part of the Jardines Del Rey archipelago that counts over 2,500 islands and cays widely renowned for its white sand beaches, calm and crystal-clear waters and natural surroundings.”

SO/Paseo Del Prado La Habana (250 rooms)

The property is owned by Gaviota. Accor S.A. reports the property will open in November 2019. From Accor S.A.:

“You already dreamed about it! In 2020, SO/ Hotels & Resorts will open a new address in America! Where? In the heart of one of Cuba's most emblematic districts: Havana. Discover now the SO/Havana Paseo del Prado. Charm, history, design, a vibrant atmosphere... The brand has it all! Take the Malecon boardwalk and join the El Vedado district of Havana City where its wide avenues and villas will take you on a 1950s American series. Not to miss: the alleys of Habana Vieja with its ancient monuments like forts, churches, palaces... The Cuban capital captivates the imagination like no other city on earth! And this is precisely the new destination of the SO/ brand.

With 10 floors above street level, SO/Havana Paseo del Prado feature 250 guest rooms, including 36 suites. Ranging in size from 34 to 64 square meters, guest rooms will consist of stylish contemporary furnishings, neutral palettes, innovative technology and thoughtful designer amenities. Interior meeting rooms, SPA with 6 treatment rooms, fitness center and swimming pool with adjacent bar will be at the disposal of our travelers. The hotel will also feature additional signature elements of the SO/ lifestyle such as the Just Say SO service and SO Parties, featuring the hottest DJs and artists.

SO/ hotels are vibrant and highly sought-after destinations for trendy and discerning travelers. The brand is already present in Thailand, Mauritius, Singapore, Berlin, Vienna and St. Petersburg. The brand will soon reveal its future addresses in Auckland (November 2018), Kuala Lumpur (2020), Samui and Jakarta (2021).”

LINK To Complete Analysis In PDF Format