Although many Western hotel chains have put their development plans in Russia on hold due to the conflict with Ukraine, some hotels branded by these same chains have recently opened and others are in the process of opening. Russian media recently announced the opening of new hotels under the Hyatt Hotels Corporation and IHG Hotels & Resorts brands, for example. One of the recent openings is the Hyatt Regency hotel in Rostov-on-Don, a city in southern Russia. Hyatt reiterated its utmost commitment to taking a step back in the country, however, other Western hotel chains face complications in terms of business downsizing in Russia as the industry is built on a network of layered relationships between hotel owners and investors, brands and third-party management companies.

In fact, in addition to having to avoid Western sanctions, hotel companies also face threats from the Russian government if they downsize or close their Russian operations, which could include multi-year bans on returning to the country or failure to protect brands and intellectual property, which could potentially mean opening hotels that claim membership in Western brands. Even IHG in a recent statement reiterated that the group has suspended future investments, development activities and new hotel openings in Russia, and has also closed its corporate office in Moscow. IHG-branded hotels in Russia operate under complex long-term management or franchise agreements with independent third-party hotel companies. Given the growing challenges of operating in Russia, the group continues to evaluate these contracts and discuss with the owners, but this is a complicated and time-consuming process.