Marriott, IHG, Hilton and Accor are all suspending their future developments in Russia but unlike other big western brands they are not pulling out of the country entirely.
Many of the properties are owned by third parties and run on a franchise or management basis meaning that the companies have less control over operations.
Marriott, IHG, Hilton also said they were closing their corporate offices.
Other big western brands have made the decision to close up in Russia entirely with McDonald's and Starbucks both deciding to shut their restaurants and cafes. Unusually for McDonald's, it operates most of its restaurants in Russia, meaning it has a closer relationship with those businesses. Starbucks on the other hand, has franchises, similar to the hotel industry.
What the Brands Said
Marriott
“We are deeply saddened by the horrific violence impacting the people of Ukraine. We have supported and will continue to support humanitarian efforts through relief organizations, our network of global partners and our own operations, including housing refugees at Marriott properties in neighboring countries. We stand with all of our associates who are being impacted by the war in Ukraine and have earmarked $1,000,000 to our associate relief fund to support them during this tragic time.
“We have made the decision, effective immediately, to close our corporate office in Moscow, and pause the opening of upcoming hotels and all future hotel development and investment in Russia. We have been closely monitoring the deteriorating situation in Ukraine, Russia and neighboring countries, and remain in regular contact with our teams on the ground, as we work to comply with sanctions and applicable laws. Our hotels in Russia are owned by third parties and we continue to evaluate the ability for these hotels to remain open.
“We deplore the loss of life, widespread impacts to millions of innocent civilians and the humanitarian disaster in Ukraine. We strongly support those working towards peace and an end to the needless suffering.”
IHG
“We are deeply saddened and shocked by the war in Ukraine and our thoughts continue to be with all those impacted by these horrific events. IHG has a commitment to look after the people and communities where we have a presence around the world.
“We have long-term management or franchise agreements with independent third-party companies that own the hotels in Russia. In light of the war in Ukraine, we are suspending future investments, development activity and new hotel openings in Russia. We are also closing our corporate office in Moscow but will continue to support our colleagues.
“We are working with our hotel owners in countries neighbouring Ukraine to offer refugees temporary accommodation. As part of our proud long-standing relationship with CARE International and the International Federation of Red Cross and Red Crescent Societies (IFRC), IHG has also made a significant donation to these two humanitarian organisations. This will help them in their invaluable efforts to support refugee groups around the world, including getting aid, food, water, shelter and supplies to people in desperate need in Ukraine.”
Hilton
“Hilton joins those around the world in shock and disbelief at the tragic events unfolding in Ukraine. Our hotels have always been part of the fabric of our communities that we serve, and we take seriously our promise to positively impact the places where we live and work. In addition to the steps we have already taken to protect our Team Members and guests, we are taking the following further actions in response to the current crisis:
- We are donating up to 1 million room nights to support Ukrainian refugees and humanitarian relief efforts across Europe, in partnership with American Express, #HospitalityHelps, and our community of owners.
- We have closed our corporate office in Moscow and will ensure continued work and pay for any impacted Team Members.
- We are suspending all new development activity in Russia.
- We will donate any Hilton profits from business operations in Russia to the humanitarian relief efforts for Ukraine.
- And as previously announced, the Hilton Effect Foundation has contributed $50,000 to World Central Kitchen and Project Hope to further assist with humanitarian aid.
“Hilton continues to monitor the situation as it evolves. We are keeping our Team Members and all those impacted by these events in our thoughts and hope for a peaceful resolution to this crisis.”
Accor
In a statement quoted in the Financial Times, the company said: “All management operations including booking, distribution, loyalty and procurement services to hotels for which owners are included on any international list of sanctions will be suspended.”