Marriott To Leave Russia After 25 Years
Date: June 2022
Location: Russia
What Did They Say: The Marriott hotel chain has announced it is leaving Russia after 25 years, saying Western restrictions made it “impossible” to keep operating there. The company closed its Moscow office and paused investment in Russia in March, following the invasion of Ukraine. However, it’s 22 hotels in the country are owned by third parties and remained open. Marriott said the process of suspending operations in Russia was “complex”
Who They: Marriott, the largest global hotel brand
Main photo: The Moscow Marriott Grand Hotel, one of 13 Marriott hotels in Moscow alone
But in a statement, it said: “We have come to the view that newly announced US, UK and EU restrictions will make it impossible for Marriott to continue to operate or franchise hotels in the Russian market.”
The company said it remained “focused on taking care of our Russian-based associates” and had been supporting individuals in Ukraine and Russia to secure employment with Marriott outside countries affected by the conflict.
“We continue to join our associates and millions of people around the world in wishing for an end to the current violence and the start of a path towards peace,” it added.
Marriott joins McDonald’s, Starbucks and other companies in heading for the exits in recent weeks as the war in Ukraine continues and Western sanctions aimed at isolating Russia economically tighten.
Public outcry over Vladimir Putin’s invasion also put pressure on Western brands to distance themselves. Hotel brands drew attention for being among the slowest to respond.
“The process to suspend operations in a market where Marriott has operated for 25 years is complex,” the company said in a statement.
Marriott did not provide further details about its exit.
French carmaker Renault’s assets in the country were nationalised, while burger giant McDonald’s sold its restaurants, many of which were directly owned by the company, to an existing franchisee.
In addition, over 85 Marriott hotels are now providing lodging to refugees from Ukraine in neighbouring countries. They have provided over $2.7 million in hotel-level financial, fundraising, and in-kind support, including food and supply donations, to relief organisations operating on the ground. Marriott is focused on hiring refugees, with more than 250 already hired across more than 40 hotels in 15 European countries, with plans to continue. We will also match Marriott Bonvoy points donations to World Central Kitchen and UNICEF, up to 100 million points this year, with over 50 million points donated to date.
THPT Comment: Hurrah….the more pressure the rest of the world can put onto Putin to stop the madness in Ukraine, the better, we say. There is mixed news on how Hospitality is responding on this issue, exacerbated by the fact that the brands’ individual hotels are owned by Russian nationals and companies…..
First Seen: BBC and Hotel Analyst
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