Hyatt has dropped two hotels in Russia, becoming the first major western chain to walk away from an existing contact.
Hyatt Breaks Ties With Two Hotels In Russia
In response to the war in Ukraine, many western businesses, like McDonalds and Starbucks, have closed their doors in Russia. U.S. and European hotel chains have not. Blaming the complexities of third-party management contracts, the most we’ve seen is the closure of corporate offices or the suspension of some future development. That is, until now.
Chicago-based Hyatt has cut ties with two of its hotels in Russia, including:
- Hyatt Regency Moscow Petrovsky Park
- Hyatt Regency Sochi
A Hyatt spokesperson explained:
“We continue to evaluate our existing agreements with the third-party entities that own Hyatt hotels in Russia, including open and unopened hotels, while complying with applicable sanctions and government directives, keeping our purpose of care as well as the safety and wellbeing of our colleagues at the center of every decision we make. As a global Hyatt family, we hope for a resolution to this humanitarian crisis as quickly as possible.”
Those with future reservations at impacted properties should not expect to earn Hyatt points or enjoy any Hyatt-related benefits, such as free breakfast or room upgrades.
While Hyatt says “to the extent we are able to do so, we are working with the hotel to ensure a smooth transition of operations from our management structure and brand to minimize impact on colleagues and guests,” it also encourages guests to contact the hotel directly, not Hyatt, for any needs concerning their future stay.
This move by Hyatt does not end its presence in Russia. Hyatt will still operate a trio of hotels, including its flagship Park Hyatt Ararat in Moscow:
Additionally, a new hotel, Hyatt Regency Rostov on Don, is scheduled to open on May 15, 2022.
Other hotel chains have defended their right to remain open. For example, Accor Chairman & CEO Sébastien Bazin argued:
“Accor has been existing for 50 years now. And we’ve been in countries of war, probably 30, 40 times in the last 50 years on different continents. And Accor never pulled out of any hotel activities.”
He added:
“If you want each of us to witness what’s happening in the country, you need somebody to shelter and host those people. All of our hotels in many different countries are full of media, NGOs, and Western diplomats. They need to be hosted; otherwise, they cannot go. And otherwise, you won’t have any Bloomberg or CNN or any people basically on the news.”
Other hotel CEOs may not have been so explicit, but appear to have taken a similar position.
CONCLUSION
Hyatt has broken ties with two hotels in Russia, but will continue to manage three and open a fourth in Rostov on Don next month. Those with existing reservations at the Hyatt Regency Moscow Petrovsky Park or Hyatt Regency Sochi will no longer be eligible to receive any World of Hyatt benefits.
(H/T: Cameron Sperance)
They were probably looking for an excuse to get out of Sochi. I heard that’s really bad deal for all the Companies who invested in that town. Only the oligarchs made out big. Typical Russian corruption.
The Accor CEO isn’t wrong. The closure of Western hotels will probably impact westerners disproportionately, and shift their Dollars (or Rubles) to local brands. Diplomats, NGO, and Media could be doing good work in Russia and need somewhere to stay. Not being able to buy a Big Mac or a Pepsi sends a message to the Russian people that the actions of their government are bad. People working for AFP, AP, BBC, or CNN in Moscow can bring their Diet Coke in with them (as I would probably do), but understandably would rather stay at the Hyatt than at an old Soviet hotel.
The difference is, America is leading the sanctions. American companies should follow. Wrong is Wrong.
“Not being able to buy a Big Mac or a Pepsi sends a message to the Russian people that the actions of their government are bad. ” Jerry, I hope you’re joking, otherwise you have no idea what you’re talking about.
By the way, doesn’t Hyatt want to close some of its hotels in Turkey if the chain disagrees so much with countries conducting military operations in independent countries? Some travel bloggers even go on vacation to Turkey while criticizing Russia. Why am I not surprised.
Virtue signaling over a military conflict that I believe is ultimately the fault the USA/NATO. The USA/NATO has been acting in bad faith toward Russia since the Clinton Administration with the eastward expansion of NATO. I believe that the powers that be in Washington don’t have the guts to formally declare war on Russia using constitutional means (Congress has power to declare war) so I believe that the USA/NATO is using the Ukraine as a proxy against Russia. I believe the Ukraine is playing the role of the Whore and the USA is playing the role of the Pimp.