Havana’s New Luxury Hotel Tower Highlights Cuba’s Struggles and Aspirations for Tourism Recovery, Get the Details Here

Published on November 28, 2025

A 25-storey hotel tower is under construction in the Vedado District of Havana despite the difficulties facing the tourism sector in Cuba. With foreign contractors and construction during the down period in the island’s hospitality sector, the construction is emblematic of the desire to renew Cuba’s tourism offerings and the glaring economic and social paradoxes facing the country.

A Tower of Ambition in the Midst of Urban Decay

The towering structure, near the intersection of 1st and B Streets, is already one of the most visible landmarks along the iconic Malecón. As the project nears completion after more than three years of construction, its imposing height contrasts sharply with the deteriorating buildings that surround it. While the exterior of the hotel looks largely finished, the interior is still very much a work in progress, with workers rushing to complete critical installations like plumbing, electrical systems, and elevators.

The hotel, expected to feature 520 rooms, will offer guests panoramic views of the city and the coastline. With three levels of common areas, including a pool and a rooftop terrace, the hotel is set to cater to high-end international tourists once operational. Despite the grandeur of the hotel’s design, the project has sparked a sense of both excitement and discomfort among local residents. The towering structure is seen as a sign of Cuba’s desire to position itself as a competitive luxury destination but also as a reflection of the country’s struggles with its own economic difficulties.

Foreign Influence and Controversy Surrounding Construction

The construction of the hotel is being led by Bouygues Bâtiment International, a French construction giant with a long-standing presence in Cuba’s high-end hotel sector. Bouygues is also behind the production of prefabricated hotel modules at the Antilla Modular Plant, which continues to operate despite the urgent need for building materials for housing repairs after the devastating Hurricane Melissa. This plant’s activities have remained under the radar, with state media instructed to avoid covering it, leading to some public discontent about the allocation of resources in a time of need.

Moreover, the project has faced scrutiny due to its lack of transparency. Unlike other luxury developments in Cuba, which are often linked to the Gaesa military conglomerate, the Vedado hotel tower has no visible branding or public announcements identifying its investors or future operators. This opacity surrounding the ownership and management of the hotel has sparked curiosity and concern among locals, who wonder who will ultimately benefit from this investment and whether the project will live up to its promises.

Tourism Growth Amid Economic Pressures and Sanctions

Despite Cuba’s ongoing economic challenges, including restrictions imposed by U.S. sanctions, the government continues to focus on tourism as a key pillar for long-term economic recovery. The hotel industry, however, is facing significant hurdles, including low hotel occupancy rates. Recent estimates suggest occupancy hovers around 20%, far from the pre-pandemic levels that once saw the island’s tourism sector thriving.

For the government, expanding the country’s high-end accommodations is a critical part of its strategy to stay competitive in the Caribbean tourism market. Authorities hope that by offering state-of-the-art hotel developments, Cuba will attract more international visitors once travel conditions improve and global tourism recovers. With a focus on high-end, luxury tourism, Cuba is positioning itself as a destination that can cater to the changing demands of global travelers.

Cuba’s Struggle to Reconcile Ambition with Reality

To many residents of the Vedado district, the sight of the towering hotel has become a symbol of Cuba’s struggle between progress and its harsh realities. As cranes and scaffolding fill the skyline, passersby often stop to take in the contrast between the shiny new hotel and the surrounding area, where infrastructure continues to decay. Power outages, water shortages, and the deterioration of residential buildings are everyday challenges that residents face. For many, the gleaming new hotel represents a vision of progress that seems disconnected from the day-to-day struggles of the Cuban people.

The sight of two men napping on a patch of grass nearby, amid the construction chaos, serves as a reminder of the country’s deep socioeconomic divide. While foreign investments pour into the luxury tourism sector, the basics of daily life for many Cubans remain elusive. Locals have expressed frustration over the prioritization of upscale tourism developments in areas like Vedado while the country continues to grapple with the effects of economic hardship.

Cuba’s Tourism Sector Faces Uncertain Future

As Cuba seeks to modernize and widen the scope of its tourism products and services, the rationalization of such up-market products and services continues to fuel the debate on the possibility of economic recovery from the current extreme levels of under development. For international investors, Cuba represents a great opportunity with its relatively new tourism industry. However, to sustain economic growth and recovery from un reversable economic stagnation, Cuba must address issues such as accessibility and a transparent and fundamental provision of services. Otherwise, Cuba may never recover from the stagnation of its tourism industry.

With the ongoing construction, the new hotel tower in Vedado is anticipated to be one of the most controversial and subsequently, most popular and recognizable buildings in the city of Havana. Here, the construction is used to demonstrate construction leadership to the international community, and to domestic audiences Cuban optimism and Cuban resistance.