Currently, hotels in Cuba are state-run, but with the new merger, Starwood is planning to rebrand the hotels and staff them with locals.
The deals come just as Cuba is expecting an influx of tourists from the U.S. Last year, the country received over 3.5 million tourists from around the world.
Since the diplomatic thaw between Cuba and the U.S., Cuban officials and tourist agencies have been worried about having enough space to house tourists.
Americans still can't get tourist visas, but with more round trip flights, other companies are looking to invest in the island's industries.
American and Cuban officials signed an agreement on Feb. 16 to resume commercial flights between the two countries.