Luxury five-star hotels Ritz-Carlton, Belmond, Four Seasons, owned by foreign companies, continue to operate in Russia under sanctions, but are in dire need of tourists. According to Bloomberg, mostly luxury hotels such as the Ritz-Carlton in Moscow and the Four Seasons, which offer accommodation up to 290,375 rubles ($ 2,165) per night, have to rely on domestic travelers.
Not all well-known foreign companies seek to leave the Russian market. Belmond Hotel is an example of this. Belmond also opened its Grand Hotel Europe in St. Petersburg. The hotel chain is owned by LVMH, which earlier this month decided to close 124 stores in Russia. The French luxury goods manufacturer, which owns the Louis Vuitton, Christian Dior and Sephora brands and has 3,500 employees in the country, bought Belmond in the 2019 forecast. Although logistical problems may make it difficult to deliver Louis Vuitton bags to Russia, management now sees that the hotel can still be serviced and provided with services. A Belmond spokesman said the network continued to monitor the situation.
The international hotel operator Marriott International, which manages more than 7,500 hotels, including the Ritz-Carlton, in 131 countries, said on March 10 that its hotels in Russia are owned by third parties, and he continues to evaluate the possibility of keeping tourist sites. open. Meanwhile, the company has closed its corporate office in Moscow and stopped investing in the development of the Russian network. Hotel groups usually provide or operate franchised hotels without owning them.
Earlier, due to the coronavirus pandemic and the decline of the international tourist flow Marriott, which manages the world’s largest hotel chain, ended last year with a net loss of $ 267 million, and the company recorded a “minus” for the first time since 2009.
InterContinental Hotels Group said on March 10 that it was also suspending the opening of new hotels in Russia, adding that it had “long-term management or franchise agreements with independent third-party companies that own hotels in Russia.”
Also read: Almost 4 million Russians disconnected from the largest tourist service, he left Russia
Sanctions imposed on Russia could scare away foreign tourists and affect hotels, the management of International Hotel Investments Plc, registered in Malta, told the publication on March 3. The company owns the Corinthia chain, which has a luxury hotel in St. Petersburg, located near the Hermitage – the city’s largest tourist attraction.
The global tourism sector has already taken steps to reduce its presence in the region. Booking services in Russia and Belarus have stopped booking accommodation, Glenn Vogel, CEO of LinkedIn, told LinkedIn on March 4. Demand for tickets is falling – their bookings fell by 49% for the week from February 24 to March 2 compared to the previous 7 days.
We will remind, earlier DIP wrote that Accor, Hilton and Hyatt won’t open new hotels in Russia, read details follow the link.