Ukraine: hoteliers support refugees, development suspended in Russia

While opening their establishments to refugees outside Ukraine, in addition to donations and financial support, the world's leading hotel companies have suspended their development in Russia. But they have not completely stopped doing business there.
The Fairmont Grand Hotel in Kiev, one of seven Accor hotels in Ukraine.
The Fairmont Grand Hotel in Kiev, one of seven Accor hotels in Ukraine.

Updated on 18 March

Ukraine will win" . On 2 March, Ukraine's largest hotel group, Reikartz Hotel, clearly showed its support for the Russian invasion. On the strength ofaround sixty hotels in Kiev and thirty other cities across the countryThe hotelier is bearing the full brunt of the war ravaging its country, having announced the closure of numerous establishments in Kiev, Kharkiv, Mariupol and Odessa on 25 February.

Naturally, the major global groups have a much smaller presence in Ukraine, with Hyatt and Hilton operating only in Kiev, while IHG has five establishments. Accor, on the other hand, has seven hotels - four of which are in the capital, including a luxurious Fairmont - some of which have retained their original character. their doors open to welcome journalists, NGOs or families seeking refuge there. A surge of solidarity that also concerns the reception of refugees outside UkraineHilton, for example, has announced a donation of up to one million overnight stays across Europe, in partnership with American Express and #hospitalityhelps.

Similarly, Accor, Hyatt, IHG and Radisson are opening their establishments to refugees in Ukraine's neighbouring countries. On 4 March, Accor stated in a situation report that a large number of hotels volunteered to welcome refugees, not only in Lublin, Krakow, Nowy Sacz, Raclawice and Warsaw, but also in Bucharest, Timisoara and Galati in Romania, Chisinau in Moldavia and Budapest in Hungary, as well as in Western Europe, notably in Paris and Genoa. " A list that has since been extended to meet new needs" says the French group's communications department. To mark the occasion, Accor has also reactivated the CEDA platformcreated during the pandemic to organise accommodation for homeless people and healthcare professionals.

This outpouring of solidarity is reflected in the financial support provided by hotel groups. Marriott, for example, has earmarked one million dollars for its a fund to support its employees while at the same time inviting members of the Marriott Bonvoy programme to donate points to support UNICEF and World Central Kitchen. For its part, Accor has mobilised its ALL Heartist fund, a financial vehicle for solidarityto support its employees and their families affected by these tragic events, while at the same time offering its employees the opportunity to make donations to the UNHCR, to which the Group will contribute.

Hyatt's relief fund and job transfers, donations from IHG to CARE International and the International Federation of Red Cross and Red Crescent Societies, and from Radisson to the International Committee of the Red Cross: the number of initiatives has multiplied in recent weeks. Another hospitality player, Airbnb, has announced that it is offering free temporary emergency accommodation to up to 100,000 refugees from Ukraine. But the platform has found another form of use, as thousands of Internet users have hijacked it to turn it into a way of sending donations to the local populationby booking stays without actually honouring them.

Support in Ukraine, suspension in Russia

There is another aspect of the crisis, and not the least important, the position of hotel groups vis-à-vis Russia. Unlike many multinationals, such as McDonald's, which has decided to temporarily close its 850 restaurants in Russia, none of the world's leading hotel companies has ceased trading there altogether. " It is not in the Group's DNA to leave a country in difficulty" Accor's communications department explains, Burma being another example of this policy. This stance is broadly shared by other groups, including Radisson Hotel: " All our properties in Russia are owned by third parties and we continue to operate them in one way or another, as we play a key role in supporting our employees and local communities. "

On the other hand, Hilton, Hyatt IHG, Marriott and Radisson have all decided to close their offices in Moscow and, above all, to close their operations there. suspend their investment and development activities in Russia. Accor, without communicating officially like its American counterparts, stresses that it took the decision to halt its development in Russia at the start of the conflict, and also to suspend partnerships under the All loyalty programme. In addition, owners subject to European and American sanctions have seen their businesses suspended. their establishments withdrawn from the booking platform. " We will remain vigilant and updates on these sanctions will be passed on as they become available." says the French group. " As this complex situation evolves, we will continue to evaluate our existing management agreements with the third-party entities that own Hyatt hotels in Russia, while complying with applicable sanctions and U.S. government guidance." says the Hyatt Group.

On 14 March, the Ukrainian Hotels and Resorts Association (UHRA) and the government's tourism development agency (SATD) sent an open letter to the seven main international hotel operators, expressing their disappointment at their " procrastination about continuing business in Russia" . " We naturally appreciate the support for humanitarian efforts that hotel companies are giving to Ukrainian refugees, but we reject the fact that the best they can do in Russia is to 'comply with sanctions and applicable laws'. " they said. In addition, the association is calling on international groups to ask themselves whether it is more ethical to bear the tax cost of breaching their contracts in Russia or " to maintain them and to continue trading under the illegal and brutal regime of the war criminal Putin, and against its own codes of business ethics. "Hilton has, however, made a decision regarding any income it may earn from its presence in Russia: to donate these profits to humanitarian aid efforts in Ukraine.