In our Update of 20 January 2026, we referred to statements made by U.S. President Donald Trump and Secretary of State Marco Rubio related to Cuba, including assertions that Cuba would no longer receive oil or financial support from Venezuela. In addition, in parallel, the U.S. administration increased pressure on other regular oil and gas suppliers to Cuba (in particular Mexico and Jamaica) to stop supplying oil products to Cuba and on 29 January 2026, President Trump issued an Executive Order, stating that Cuba poses “an extraordinary threat to U.S. national security”. With these measures, the U.S. government has imposed a full de facto oil blockade against Cuba. Consequently, in February 2026, Cuba ran out of Jet Fuel and major carriers like Air Canada, Air Transat, and WestJet suspended all flights to Cuba, at least until 1 May 2026 (the end of the tourism high season). As a result, tourist arrivals from Cuba’s most important source market for tourists came to an abrupt halt, which has substantially impacted the occupancy levels and operations of the hotels in which CEIBA Investments has an interest.
With a view to prevent operational losses and minimize the negative impact of the sudden drop in clients, Miramar S.A., our joint venture company that owns three hotels in Varadero and one hotel in Havana has decided to temporarily suspend operations at one of its three hotels in Varadero. In addition, TosCuba S.A., the joint venture company that owns the Melia Trinidad Península hotel, has drastically decreased its operations by taking rooms out of operational inventory. The Company expects that as a result of these temporary measures the joint ventures will not incur operational losses during the period that the oil blockade continues, although it is expected that cash flow will be reduced in the coming period.
The Miramar Trade Center office and retail complex in Havana in which the Company has an interest is presently operating in the ordinary course, assisted by its back-up generators. Occupancy levels remain in the high nineties.