UHRA and SADT call for international operators to leave Russian market

It has been 22 dramatic days of since the beginning of Russia’s war against Ukraine, of genocide & continuous act of terrorism against Ukrainians civilians!

On March 14 Ukrainian Hotel & Resort Association (UHRA) and State Agency for Tourism Development (SATD) submitted open letter to the seven leading international hotel operators, running and servicing hotels in Russia under their international brands (both management and franchising models of operation). #Hilton, #IHGhotels&resorts, #MarriottInternational, #Accor, #HyattHotelsCorporation, #WyndhamHotels&Resorts, #RadissonHotelGroup

As of 17 March, we have only received a formal comment from Marriott that effectively repeated the same lines as their “Statement on Ukraine” of 10 March.

We naturally appreciate the support of humanitarian efforts the hotel companies are giving Ukrainian refugees but reject that the best they can do in Russia is to “comply with sanctions and applicable laws”.

The UHRA and SATD are incredibly disappointed at the procrastination of the hotel operators regarding the continuation of business in Russia. The little press coverage of their continued operation in Russia appears to have been focused on their incapacity to break from franchise/license agreements. These reports do not address that such contracts are written by the hotel operators and their skilled lawyers, and usually contain numerous exit clauses that could be triggered under force majeure, breach of material covenants, compliance, detrimental business conditions etc. And in any case, if there is a financial cost to exit, then it should be questioned is it more ethical to breach such contracts at a fiscal cost or to maintain them and continue trading under an unlawful and brutal regime of the war criminal Putin, and against own business ethics codes!

Please feel free to post your comments and help with sharing this open letter!

Should you have any questions or would like to set up an interview online or in Lviv or Kyiv, please feel free to contact us at international@uhra.com.ua or +380503375010 mobile of Ivan LOUN of UHRA.