New Luxury Hotel in Havana Faces Backlash Amid Economic Struggles and Declining Tourism

HAVANA (AP) — A striking new addition to Havana’s skyline, the Selection La Habana hotel, is already drawing criticism despite its yet-to-be-commissioned opening. Standing at 150 meters (490 feet), this towering 40-story building is the tallest in the city and boasts 542 luxury rooms with panoramic views of Havana and the sea. However, its grand design has become a focal point for debate, as many Cubans question the prioritization of luxury tourism investments while the nation faces severe economic challenges.

Susel Borges, a 26-year-old artisan, expressed her discontent, saying, "All that money could have been spent to build hospitals and schools," while gazing up at the imposing structure, which locals have dubbed the "K and 23 building" due to its location.

Located near iconic landmarks such as the Habana Libre hotel and Coppelia ice cream parlor, the Selection La Habana hotel is part of a larger government initiative to build a dozen luxury hotels, primarily in Havana. Despite the ongoing economic crisis, the project has continued, with construction even pushing forward during the COVID-19 pandemic, while many existing luxury hotels sit largely unoccupied.

Tourism, which once fueled Cuba’s economy, has drastically declined in recent years. The government reported only 2.2 million visitors to the island in 2024, down from 4.2 million in 2019, marking a significant drop. Officials cite a combination of factors for the decline, including supply shortages, ongoing blackouts, low wages, emigration, and heightened U.S. sanctions that have restricted travel, particularly from U.S. citizens, and limited the cruise industry.

"Tourism is gone," said Julio García Campos, who drives a vintage 1951 Pontiac for tourists. He lamented the loss of the influx of American and European visitors that had once flocked to the island after President Obama lifted sanctions in 2014.

The Selection La Habana, like other hotels in Cuba, is owned by the state and operates under the Ministry of the Revolutionary Armed Forces through its conglomerate, GAESA. This military-run entity has long been criticized for its lack of transparency. The hotel’s construction costs remain undisclosed, and as a military-operated business, it is exempt from audits by Cuba's Comptroller General's Office.

Economist Pedro Monreal has pointed out the “incongruity” of prioritizing tourism investments when other critical sectors, like agriculture, are sorely underfunded. "With food insecurity becoming a growing concern, it's troubling to see agricultural investment lag so far behind tourism," Monreal wrote on social media last year.

Architects have also voiced concerns over the hotel’s design, criticizing its clash with the city’s aesthetic and urban regulations. Abel Tablada, an architect and university professor, described the building as a textbook example of poor bioclimatic design. He argued that in a tropical climate, the excessive glass windows and the building’s height were ill-suited for the environment. Tablada called it "unforgivable" that such a large portion of the country’s limited resources had gone into a project that many feel doesn’t contribute positively to Havana’s architectural or cultural landscape.

As Cuba grapples with its economic troubles, the Selection La Habana hotel stands as a symbol of both the country's aspirations and the growing discontent among its citizens over the allocation of resources during a time of widespread hardship.