The Destruction Of The Hotel Saratoga In Havana Represents .13% Of Cuba's 71,000 Hotel Rooms. Of Concern Now Is What Insurance Companies Will Require For Visitors And Hotel Management Companies.
/The loss in hotel rooms resulting from a natural gas-inspired explosion on 6 May 2022 which destroyed the 96-room four-star Hotel Saratoga in the city of Havana, Republic of Cuba, represents .13% of the Republic of Cuba’s approximately 71,000 hotel rooms.
From an available inventory perspective, the reduction is inconsequential as the overwhelming majority of visitors to the Republic of Cuba are low-to-mid-market tourists who visit one-star to three-star all-inclusive beachfront resorts located outside of Havana- and do not visit Havana as a part of their holiday package.
The Republic of Cuba is not yet a destination for luxury tourism where self-defined or Republic of Cuba government-defined five-star properties located in the Republic of Cuba are comparable with five-star properties located throughout Caribbean Sea-area countries and in other countries. For example, the Atlanta, Georgia-based Forbes Travel Guide has not dispatched a rating team to the Republic of Cuba to review the 246-room Gran Hotel Manzana Kempinski La Habana, the 250-room SO/Paseo del Prado La Habana, or the Hotel Saratoga prior to the explosion.
For the government of the Republic of Cuba, most concerning will be the immediate and highly visible resurrection of concerns by visitors (and residents) about the fragility of the energy grid (electric, gas, water, sewer, communications, etc.) servicing not only Havana, but areas throughout the 800-mile-long archipelago which is home to 11.3 million citizens. The energy grid is owned and operated by Republic of Cuba government-controlled entities and remains in a consistent state of disrepair although efforts remain towards updating production, transmission, and delivery elements and to transition portions of the energy grid to renewable sources.
Mitigating the concern of the government of the Republic of Cuba somewhat is far fewer visitors to the Republic of Cuba in 2020, 2021, and thus far in 2022 due to primarily issues relating to the pandemic COVID-19 which began in January 2020 and more recently the impact of sanctions upon financial institutions and airlines in the Russian Federation which deprives the Republic of Cuba of opportunities to increase engagement with tourists from the Russian Federation. And, due to changes since 2017 in United States travel-related regulations focusing upon the Republic of Cuba and impact upon travel by the pandemic COVID-19 have resulted in far fewer visitors (not for the purpose of tourism which is prohibited by United States law) including those of Cuban descent visiting family and friends have arrived in the Republic of Cuba.
Companies providing insurance for properties (and for the non-Republic of Cuba-based management companies operating those properties) located in the Republic of Cuba may review the coverage and conditions of the policies they issue. Republic of Cuba government-operated companies may be required to revise insurance policies impacting guests and customers to hotels, restaurants, retail stores, and for apartment buildings whose tenants include non-Republic of Cuba nationals, including diplomats.
Companies providing travel insurance for visitors may review the conditions of the policies they issue.
The deaths on 6 May 2022 of three individuals subject to United States jurisdiction at the Sandals Emerald Bay resort in Great Exuma, Bahamas, an all-inclusive property, will also impact maintenance discussions about properties in the Republic of Cuba. Likely hotel management companies will commence- and be required to commence by tour operators and travel agents and guests, thorough (and expensive) testing of all air conditioning systems, ventilation systems, and natural gas piping.
From Hotel Saratoga
The Hotel Saratoga is owned and operated by Republic of Cuba government-operated Grupo de Turismo Gaviota SA, which is under Grupo de Administracion Empresarial S.A. (GAESA), which is under the Revolutionary Armed Forces (FAR) of the Republic of Cuba.
“The long awaited refurbishment of Hotel Saratoga was finally completed with the hotel opening its doors to guests in December 2005. The Hotel is situated just inside the historical centre of the electric and sensual city of Havana. The Saratoga was one of Havana’s most stylish establishments of its time. Notorious since the 1930’s as a favorite haunt of artists and socialites from all over the world, for its superb cuisine, the open air entertainments held in its pavement arcade, and the concerts given there by such renowned musicians as the Anacaona Orchestra. The nowadays Saratoga has been recreated behind the original façade. It combines exquisite style and sense of place as well as state of the art technology. The Saratoga has all the amenities one would wish for in an exclusive city center hotel, including a stunning rooftop pool. The hotel has 96 rooms including 7 suites and various junior suites, and is managed to an international 5-star standard. The Hotel Saratoga is Old Havana’s grandest hotel, having been carefully designed for especially discerning travelers who wish to combine cultural and historical exploration of the city with enjoyment of its world-famous…”
