Spanish hotel chain Melia exits Cuba over economic and geopolitical strains

MADRID, June 3 (Reuters) - Spanish hotel group Melia said on Wednesday it would immediately stop managing, marketing and providing brand services for 15 hotels in Cuba, pointing to the island's worsening geopolitical, legal and economic conditions.

The move comes as U.S. President Donald Trump's administration steps up pressure on Cuba, using an oil blockade and tighter sanctions in an effort to cut off resources and force a change in its government.

Melia, one of the largest foreign hotel operators in Cuba, has had a major presence on the island since 1990. It said it had informed hotel owners of its decision on May 26, with confirmation issued on Wednesday. The hotels were run through its Portuguese subsidiary Ilha Bela Gestao E Turismo.

In a regulatory filing, the company said the withdrawal was driven by "a combination of unforeseen circumstances" beyond Ilha Bela's control that had significantly affected the viability, legality and safety of continuing operations.

Cuba is one of Melia's largest markets by number of hotels, but its financial contribution to the company has weakened sharply as the island's tourism sector has been hit by power shortages and falling tourism demand. The company said most of the hotels were already closed or inactive.

Ilha Bela is now working on an orderly withdrawal from the properties and is putting in place measures to keep suppliers and customers informed, it said.

(Reporting by David Latona; Editing by Ros Russell)