Starwood Hotels & Resorts has become the first American company to agree a deal with the Cuban authorities since the revolution of 1959.
The hotel and leisure company will renovate and run three hotels in Havana.
The news comes on the eve of President Barack Obama’s visit to Cuba – the first by a US president in almost 90 years.
The deal is a welcome reminder of how far things have come between the US and Cuba since they decided to normalize ties.
Tourism in Cuba is at an all-time high, including a sharp rise in the number of US visitors, especially since travel restrictions were eased by President Barack Obama.