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IHG Ceases All Operations In Russia

by John Ollila
June 27, 2022
Reading Time: 2 mins read
5

IHG has today given better visibility of what its long-term operation plans for Russia are.

Russia

The hotel group that previously ended up new development has now decided to exit the market entirely.

You can access IHG here.

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READ MORE: IHG One Rewards Rate & Bonus Points Offers

IHG’s Latest Russia Announcement:

IHG update on Russia

We remain deeply troubled by the war in Ukraine and the humanitarian crisis it has caused. Following the outbreak of the war, we announced the suspension of future investments, development activity and new hotel openings in Russia and that we did not intend to resume any investment or development activity in the foreseeable future. We also closed our corporate office in Moscow. These steps followed significant donations to our humanitarian charity partners and a commitment to work with hotel owners in other countries to shelter refugees.

Subsequently, on April 8 we announced that we have been in discussions with the owners of the 28 IHG-branded hotels in Russia regarding the complex, long-term management and franchise contracts under which these hotels operate.

We are now in the process of ceasing all operations in Russia consistent with evolving UK, US and EU sanction regimes and the ongoing and increasing challenges of operating there.

As we do this, we continue to remain focused on supporting our teams in Russia and in Ukraine, in line with our commitment to care for our people and the communities in which we operate.

IHG Hotels Still Available on App:

But Not on IHG’s Wesbite:

Conclusion

Not sure what ceasing all operations in Russia means?

Can these hotels continue displaying the IHG brands they were associated with, or will they be reflagged under local ones? How does IHG plan to enforce this?

It is easy to cut them off from the IHG One Rewards and IHG distribution, but that may mean breaking contracts with the owners and franchisees.

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