InterContinental Hotels Group (IHG) has now released a statement regarding its operations in Russia.
The hotel company released a statement regarding Ukraine a month ago and solicited donations from IHG Rewards members due to this “event.”
You can access IHG here.
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IHG’s Statement On April 8:
IHG statement on Russia
We continue to be deeply saddened by the humanitarian crisis as a result of the war in Ukraine. We have previously announced the suspension of future investments, development activity and new hotel openings in Russia. We do not intend to resume any investment or development activity in the foreseeable future. We also closed our corporate office in Moscow while continuing to support our colleagues. These steps followed significant donations to our humanitarian charity partners and a commitment to work with hotel owners in other countries to shelter refugees.
IHG-branded hotels in Russia operate under complex long-term management or franchise agreements with independent third-party companies that own the hotels. Given the increasing challenges of operating in Russia we continue to evaluate these contracts and are in discussions with owners, but this is a complicated process and will take some time.
We continue to do all we can to support our teams in the hotels in Ukraine and Russia who are impacted by this situation and we will donate profits from Russia to support relief efforts.
How can IHG even access any potential franchise payments from hotels that carry its flags in Russia, as most bank transactions have been banned?
IHG’s Statement On March 9:
IHG statement on Ukraine
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 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.
IHG’s Unfortunate Email:
It is easy for international hotel companies to exit from Russia. Just delete the hotels from your distribution system, and cease any affiliation. They may continue to fly western flags for a while,
The sanctions set by western countries shield companies when they break their legal obligations to franchisees.
I am glad that IHG no longer dances around the word war but correctly uses it to describe Russia’s actions in Ukraine.