Marriott International, a major American hotel group, has decided to pause all its activities in Russia. The move follows new sanctions from the United States, the United Kingdom, and the European Union, which the company says would prevent Marriott and its hotel franchises from operating within the Russian market any longer.
The company noted that withdrawing after a 25-year presence in Russia has been a challenging process. Marriott committed to prioritizing the welfare of its employees in the country, including arrangements for continued employment abroad where possible.
As part of its support, Marriott contributed 1 million dollars in internal funding aimed at assisting network workers and their families in Russia and Ukraine with relocation, as well as providing food and transportation vouchers and access to medical and legal services.
In addition, the group has allocated more than 2.7 million dollars to aid Ukrainian refugees, helped recruit over 250 Ukrainians across 15 European nations, and ensured shelter for 85 hotels within its network.
On March 10, Marriott announced the closing of its Moscow office, the suspension of hotel investments in Russia, and the postponement of new development projects until further notice.
Marriott International operates 29 properties in 13 Russian regions and held the top spot in Forbes’ 2019 ranking of Russia’s largest hotel chains. Five Marriott-branded hotels in Moscow are owned by Safmar, a business group led by Mikhail Gutseriev, including Marriott Tverskaya, Marriott Royal Aurora, Marriott Grand Hotel, Sheraton Palace and National, as well as the Luxury Collection Hotel. These properties are managed by Interstate Hotels & Resorts, a British firm.
A source from Safmar stated to RBC that the hotels will continue to operate, though the format and brand name may evolve after clarifications are received from the network.
Rostourism indicated that Marriott-branded hotels in Russia will keep operating after the company’s departure. A representative noted that while bookings will be affected, ongoing operations could still proceed and that opportunities would arise for domestic chains to expand. The goal is to support and grow the hospitality sector despite changes in brand participation.
Meanwhile, Hilton and Hyatt have also reduced their Russian footprint. In March, both groups limited activity by closing offices and pausing new investments, with further moves anticipated in the following months. The InterContinental Hotels Group has signaled a similar retreat, and industry observers have discussed whether Marriott and Hilton might exit Russia entirely. Knight Frank has echoed the possibility of broader withdrawals in the real estate sector.
Hyatt’s management of two hotels in Yekaterinburg was transferred to Russian personnel from Hotel Development Company LLC, and Hyatt Regency Moscow Petrovsky Park along with Hyatt Regency Sochi were affected as changes unfolded, including a rebranding of the Sochi property to Grand Karat Sochi as of April 15.
Industry voices have cited a combination of geopolitics and softer demand as drivers behind these departures. Analysts note a decline in international travelers booking high-end rooms priced between 60,000 and 100,000 rubles per day, which impacts revenue and strategic decisions. Consumers relying on loyalty programs and reservation systems may also experience disruptions if international networks reduce or terminate operations in the country.
Experts observe that many hotels operated by these chains in Russia sit in buildings not owned by the hotelier, which could enable owners to revive operations under different brands if international players exit. Current Russian law also permits licensing arrangements that could influence any restart under familiar names if ownership changes occur.
Knight Frank, a hotel consultancy, notes that while the Accor network is reportedly evaluating its position, the overall share of the Russian market held by international chains is not large. In times of significant reputational risk, some players might pause operations, yet the domestic market could continue growing thanks to experienced operators and managers within Russia. After a withdrawal by global brands, local expertise could help sustain and reshape the market landscape.
In March, Booking and Airbnb also announced a suspension of activities in Russia. A Booking.com spokesperson explained that the company must halt travel services due to the increasing complexities of doing business there. Airbnb likewise cited sanctions as a reason for difficulties in operating within the country. Since the onset of Russia’s actions in Ukraine, international firms have stepped back from joint ventures and scaled back operations. Citing data from Yale University, the number of such withdrawals had risen to over a thousand by early June.
Overall, the aviation and hotel sectors in Russia have seen a wave of retreat among foreign operators. The evolving landscape continues to prompt questions about market structure, branding, and the role of domestic players in sustaining tourism and hospitality in a changing geopolitical environment. The industry appears poised to adapt, with a focus on employee welfare, domestic capability, and the potential for new branding arrangements as the market realigns.