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The Cosmos Hotel Group, regarded as the largest hotel operator in Russia, announced its entry into the Cuban market with the management of the Sierra Cristal Resort, a five-star hotel located in the province of Holguín, 25 kilometers from the city of Antilla and 114 km from Frank País International Airport.
According to official and tourism media from Russia, the agreement was signed with the military company Gaviota S.A., a subsidiary of the GAESA conglomerate controlled by the Armed Forces, during the Tourism Territories Forum (FTT-2025) held in Moscow. The new complex will open its doors in December under the brand Sierra Cristal by Cosmos Hotels and will feature 640 rooms, upscale restaurants, poolside bars, a private beach, and activities for international tourists.
Alexander Biba, president of Cosmos Hotel Group, noted that this will be the first international resort managed by the company, describing it as part of their "long-term global expansion strategy."
A tourist bet that overlooks reality
The operation is announced amid a deep crisis in Cuban tourism. Only between January and August 2025, the island received 1.79 million visitors, representing a 15.7% drop compared to the same period last year, according to official data.
In the specific case of Russian tourists, the decline has been more pronounced: a 45.6% decrease between January and May, due to negative experiences, structural problems, insecurity, and the widespread deterioration of the hotel sector, as the visitors themselves explain.
A tourist who traveled to Cayo Coco compared her experience to the scarcity of the Soviet era, reporting a lack of drinking water, insects, poorly maintained facilities, and inadequate service. Another tourist reported in Varadero that “they treat tourists like pigs.”
Luxury tourism in a country without power
As citizen discontent grows over power outages, inflation, and scarcity, the regime continues to invest millions of dollars in luxury hotels that remain half-empty.
In 2023, investment in the hotel industry in Havana was 70 times greater than that dedicated to community services, which has sparked criticism for the neglect of vital sectors such as water supply, electricity, and urban cleaning.
The national hotel occupancy remains below 25%, and losses from declining revenues exceed 150 million dollars so far this year. However, the Minister of Tourism insists that “tourism is alive and kicking” and blames the embargo for the current situation, despite statistics that contradict this claim.
Russian tourism to the rescue?
The arrival of Cosmos Hotels in Holguín represents an opportunity to attract new Russian travelers, although the visitor data, low air connectivity, and conditions in the hotels raise serious doubts about its viability.
The most recent figures confirm a widespread collapse of the sending markets, including Russia, which undermines the official expectations.
Although the Sierra Cristal Resort promises luxury, diverse cuisine, and a private beach, the daily reality in Cuba continues to be marked by hardship, blackouts, shortages, and growing social discontent.
With five-star hotels managed by the military, but lacking water and electricity in the neighborhoods, the new Russian project could become another symbol of the contrast between official propaganda and real life on the island.
Frequently Asked Questions about Russian Hotel Management in Cuba and the Tourism Crisis
What is Grupo Hotelero Cosmos and what is its plan in Cuba?
The Cosmos Hotel Group is the largest hotel operator in Russia and has announced its expansion into the Cuban market with the management of the Sierra Cristal Resort in Holguín. This will be the first international resort managed by the company as part of its global expansion strategy. The resort will open its doors in December under the brand Sierra Cristal by Cosmos Hotels and will feature 640 rooms, upscale restaurants, and other luxury amenities.
Why is tourism in Cuba in crisis?
Tourism in Cuba is facing a profound crisis due to various factors, such as the lack of maintenance of facilities, food shortages, poor customer service, and insecurity. Additionally, the decline in the number of visitors from Russia and other countries has exacerbated the situation. In the current context, between January and August 2025, the island welcomed 1.79 million visitors, representing a 15.7% decrease compared to the same period the previous year. The drop in Russian tourists has been more pronounced, with a decline of 45.6% between January and May.
How does the energy crisis affect tourists in Cuba?
The energy crisis in Cuba has resulted in constant blackouts affecting both residents and tourists. However, some Russian tour operators claim that the higher-end hotels are equipped with generators that ensure stable operations, although this statement contrasts with the reality faced by Cubans who endure daily power cuts. The Russian embassy in Havana has issued recommendations for tourists to keep their mobile devices charged due to electrical instability.
What is the economic impact of the tourism crisis in Cuba?
The crisis in tourism in Cuba has resulted in estimated economic losses of over 150 million dollars so far this year. Hotel occupancy has remained below 25%, meaning a significant number of rooms remain unoccupied. Despite these figures, the Cuban government continues to invest in the construction of luxury hotels, which has faced criticism for the neglect of vital sectors such as water supply, electricity, and urban cleaning.
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