Marriott International and Hilton Worldwide Holdings are suspending the development of new hotels in Russia, joining a corporate backlash against Russia’s actions in Ukraine, Report informs referring to Bloomberg.
The announcements follow decisions by McDonald’s, Starbucks, and other iconic US brands to stop doing business in the country. Neither Marriott nor Hilton has halted operations at existing hotels. Russia’s government has outlined a proposal to seize and even nationalize some foreign-owned businesses that leave the market.
“Our hotels in Russia are owned by third parties, and we continue to evaluate the ability for these hotels to remain open,” Marriott said in a statement on March 10.
In addition to suspending new hotel deals, the hospitality giants have closed their corporate offices in Moscow and pledged support for humanitarian efforts. Marriott said it has earmarked funds to help hotel workers affected by the war, and is housing Ukrainian refugees in hotels in neighboring countries.
Hilton is partnering with American Express to donate 1 million room nights to refugees, according to a March 9 statement. The company, which closed its corporate office in Moscow, will also donate any profits from the operation of its 26 Russia hotels to relief efforts in Ukraine.
Hyatt Hotels also said it would suspend new investments while determining the best way to support workers and guests at its Russia hotels.
This is while the Russian franchisee of global pizza chain Domino’s has suspended royalty payments from its restaurants in Russia and will limit further investment in the country, according to Reuters.
DP Eurasia NV, the Netherlands-based independent franchisee of US firm Domino’s Pizza Inc in Russia, Turkey, Azerbaijan and Georgia, is Russia’s third largest pizza delivery firm with 188 outlets, all of which remain open.
By contrast, a growing number of Western companies including McDonald's, Starbucks and Pizza Hut, have shut some or all of their outlets in Russia.