Global hotel companies are following in the paths of other corporations and shutting down operations in Russia as the invasion of Ukraine continues and sanctions mount. Several major companies have released statements announcing their plans to close offices in Russia and to provide support for refugees.
The initiatives may also have a more logistical motivation. According to data from ForwardKeys, Russia’s invasion of Ukraine prompted an instant spike in flight cancellations to and from Russia. On Feb. 25, the day after the start of the invasion, every booking that was made for travel to Russia was outweighed by six cancellations of pre-existing bookings. The source markets exhibiting the highest cancellation rates, in order of volume, were Germany (773 percent), France (472 percent), Italy (152 percent), the U.K. (254 percent), India (285 percent) and Turkey (116 percent).
AAHOA Chair Vinay Patel noted the launch of the #HospitalityHelps initiative, which is is connecting families on the run from the war in Ukraine with hotel owners across the world providing free hotel stays.
“The hospitality industry has always been one to step up in times of need,” Patel said. “The #HospitalityHelps initiative is a true testament to what can be accomplished when we work together to help those who are suffering. At the end of the day, people just need to feel safe. They need a roof over their heads and a place to call home while their country is experiencing extreme unrest,” Patel said. “This is the very foundation of the hotel industry and what hotel owners strive to do each and every day: provide solace and peace for those who need rest and a safe place to stay.”
Marriott International
A statement from Marriott International claimed the company has “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.” Marriott also has earmarked $1 million to its associate relief fund to support employees affected by the war.
Effective immediately, Marriott has closed its corporate office in Moscow and paused the opening of upcoming hotels and all future hotel development and investment in Russia, complying 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.”
Hyatt Hotels Corp.
Similarly, Hyatt Hotels Corp. has suspended development activities and any new investments in Russia. “We will continue to evaluate hotel operations in Russia, while complying with applicable sanctions and U.S. government directives as we hope for a resolution to this crisis,” the company said in a statement. “Understanding that many people in Russia face challenges and uncertainty about their future as well, we are determining how best to support and care for our hotel colleagues and current guests in the country.”
The company also said it was providing refugee accommodations across Europe, sending supplies to the people of Ukraine, arranging job transfers for Hyatt colleagues and providing a relief fund for colleagues in need of basic necessities, relocation support and care. “We will continue to work to expand our humanitarian efforts across the Hyatt portfolio.”
IHG Hotels & Resorts
IHG Hotels & Resorts has long-term management or franchise agreements with independent third-party companies that own the company's 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.”
The company said it was working with hotel owners in countries neighboring Ukraine to offer refugees temporary accommodation and has donated to CARE International and the International Federation of Red Cross and Red Crescent Societies. “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,” according to the company.
Hilton
Hilton and American Express, in partnership with Hilton’s ownership community, are donating up to 1 million hotel roomnights in hotels across Europe to support Ukrainian refugees. The partners are making rooms available without charge to relief organizations such as #HospitalityHelps, which will in turn be provided to Ukrainian refugees and the first responders supporting humanitarian efforts across Europe.
“More than 2 million people have fled Ukraine and have had to make the unimaginable decision to leave their homes, and all that they knew behind,” American Express Chairman and CEO Stephen J. Squeri said in a statement. “While we can never replace what’s been lost, American Express is honored to partner with Hilton again to donate 1 million rooms to refugees and first responders impacted by this devastating war. Our hope is that we can provide some relief during this incredibly challenging time.”
Hilton also has closed its corporate office in Moscow but plans to “ensure continued work and pay for any impacted team members.” The company is suspending all new development activity in Russia and will donate any Hilton profits from business operations in Russia to the humanitarian relief efforts for Ukraine.