U.S. Investment in Cuba Begins with Starwood Hotel Deal

By Brian Kesten

Starwood Hotels & Resorts, an American company, has agreed to buy and renovate three historic resorts in Cuba. The purchase, approved by the Treasury Department in the U.S., marks the first major foray of an American company into Cuba in decades. Although Congress has not acted to end the embargo on Cuba, President Obama continues to lift restrictions on travel, financial transactions, and trade with Cuba.

The major Caribbean island observed a 25 percent increase in visitors in 2015. However, Cuba may not have the capacity to welcome additional visitors: Cuba’s resort industry has been oversaturated, causing shortages and overbookings.

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