British hotel operator InterContinental Hotel Group (IHG) (brands Holiday Inn, InterContinental, Crowne Plaza) has decided to leave Russia. About Writer Kommersant, citing a source.
According to the interlocutor of the publication, the company is negotiating with the owners of Russian hotels about the termination of management contracts due to the political risks associated with Russia’s special operation in Ukraine.
Market experts agreed that hotel chain contracts often include a force majeure clause. In this case, IHG will be able to terminate the contract with impunity, as the company cannot continue to operate in Russia.
Analysts thought IHG’s exit would have a serious impact on the hotel services market. This is because Russian operators cannot afford to manage the entire portfolio of the group due to a lack of capacity.
IHG, one of the three largest chains in the hotel market in Russia, manages 29 hotels with a total of 6.6 thousand rooms.
March 10 DEA Novosti reportedHilton and Hyatt hotel chains announced the suspension of new hotel opening activities in Russia.
Source: Gazeta
Barbara Dickson is a seasoned writer for “Social Bites”. She keeps readers informed on the latest news and trends, providing in-depth coverage and analysis on a variety of topics.