Given recently published information, Meliá Hotels International, S.A. wishes to report the following:
We confirm that on October 11, 2019, the Executive Vice President and CEO of Meliá Hotels International, S.A. received a letter from the United States of America State Department, in which, pursuant to Title IV of the "Liberty Act" (also known as the Helms Burton Act) and in the event of not accepting a series of conditions related to the activities of subsidiary companies in the Republic of Cuba within a period of 45 days, he would be prohibited from entering the United States of America. We believe that similar letters have been sent to more than fifty companies with interests in Cuba.
The US government linked this notification to the cooperation of certain subsidiary companies with Cuban public entities in the management of two hotels in the Holguín region, in their opinion located on a plot of land expropriated from the Sanchez Hill family in the late 50s of last century. It should be remembered that the claims made in the Spanish courts by alleged representatives of the mentioned family were entirely dismissed.
The conditions imposed by the US State Department were not acceptable to the company. Furthermore, compliance with them would also have been contrary to European regulations (known as the Blocking Statute) which consider the Helms Burton Act a violation of the most elementary principles of international law.
In compliance with the aforementioned community regulations, the resolution of this issue has been placed in the hands of the Spanish and community institutions and authorities, trusting that their dedication, diligence and close collaboration will ultimately provide a satisfactory solution to this situation.
As one would expect, we reiterate our respect and confidence in the involvement and ability to find a positive solution of the Spanish and community authorities and courts, and also reiterate the good faith, legality and responsibility with which our subsidiaries have always carried out business in Cuba. We trust that the current controversy generated by the activation of titles III and IV of the Helms Burton Act will be resolved in a manner favourable to the interests of our Group.
