IHG halts all Russian developments
The Crowne Plaza Moscow – Park Huaming was due to open in Q3 2022.
IHG Hotels & Resorts is pulling out of Russia following its invasion of Ukraine, putting a stop to at least five prospective constructions.
The major hotel group confirmed it is completely withdrawing from the country, having paused its operations when the war began.
Cancelled quintet
According to the TOPHOTELPROJECTS database, this move will mean that at least five upcoming hotel constructions will now be cancelled.
This includes two four star Holiday Inn-branded hotels in St Petersburg, one on Kremenchugskaya Street and the other as part of the Neva Sky complex. However, both 400-room projects were already on hold.
Two further prospective four star Moscow hotels were due to join the portfolio too: Crowne Plaza Moscow — Park Huaming and Hotel Indigo Moscow – Tverskaya. While the 100-room Hotel Indigo development was also on hold, the 340-key Crowne Plaza was already under construction and due for completion in Q3 this year.
A five-star, 120-room Holiday Inn Express was also in the pre-planning stage in the Siberian city of Tyumen, though that had previously been suspended too.
‘Deeply troubled’
While IHG did not specifically comment on what will happen to any constructions already underway, it stated: “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.”
Permanent withdrawal
The release continued: “Subsequently, on 8 April 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.”
Related Articles
Hilton acquires NoMad lifestyle brand
Hilton has acquired the NoMad hotel brand, adding to its lifestyle brand stable following the recent acquisition of Graduate Hotels. The move takes the form of the acquisition of a majority, controlling stake in Sydell Group, the organisation that developed the NoMad...
Wyndham adds 25th brand
The deal has been explained as a strategic partnership with WaterWalk, which currently has 11 hotels with over 1,500 rooms, across key US city markets including Tuscon, Jacksonville and Wichita. The brand is an upscale extended stay offer, and will become the 25th...
Wyndham supports women owners
Wyndham Hotels & Resorts has achieved a milestone of 50 hotels signed under its Women Own the Room initiative. Launched in early 2022, the initiative aims to address the imbalance in hotel ownership, breaking down the barriers women face in the sector. Analysis of...
Loan deal backs greener hotels
Australian hotel investment group Pro-invest has agreed a green loan with Aareal Bank, refinancing a portfolio of five Holiday Inn Express properties across Australia. The arrangement refinances Holiday Inn Express properties in Brisbane, Adelaide city centre,...
Choice Hotels’ Sleep Inn reveals design details of Scenic Dreams prototype
The redesign has been developed in collaboration with developers, owners and operators to increase guests’ likelihood to stay and maintain low build and operating costs while delivering a unique midscale experience. Benefiting owners and operators The latest prototype...
HSH pauses for breath
With hotels in Hong Kong, Shanghai and Beijing, the company saw 2023 as a year of recovery, as the Chinese authorities opened up travel after the pandemic, from February. But these three properties are still lagging their performance compared with years prior to the...
ABOUT THE CHAIN
IHG operates hotels in three different ways – as a franchisor, as a manager and on an owned and leased basis.