Major European hotel operator goes bust throwing future of 125 locations into doubt
A HOSPITALITY group that operates hotels across Europe has filed for insolvency.
The white label operator, which has a portfolio of 260 hotels, is set to be restructured under self-administration.
Revo Hospitality Group, formerly known as HR Group, operates hotels across 12 European countries and 146 cities.
Founded in 2008, the group has become Europe’s largest white label operator, with a mix of hotels under major franchise brands such as Accor, Wyndham, Hilton, Marriott, and IHG.
It also has its own brands, including Vagabond Club, Hyperion, and Aedenlife.
The recent move affects about 140 companies within the group, however, all 125 hotels in Germany and Austria will remain operational with all 5,500 employees.
The process will be overseen by administrators appointed by the Charlottenburg District Court in Berlin.
“Around 140 companies belonging to the REVO Hospitality Group have filed for insolvency under their own management at Charlottenburg District Court,” the hotel group said in a press release.
“The approximately 125 hotels in Germany and Austria will continue to operate with all 5,500 employees. The proceedings will be supervised by court-appointed administrators.”
The future of the 125 hotel locations currently remains unclear.
The group cited the current “economic crisis” as the main factor behind the move, explaining: “140 companies, including the management and holding company, got into difficulties”.
“In particular, increased wage costs and the sharp rise in minimum wages, but also higher costs for rent, energy and food, are weighing on the business,” the statement continued.
“Above all, the strong expansion of the Revo Hospitality Group in recent years led to duplicate structures and integration problems.”
Since 2020, Revo Hospitality Group has reportedly expanded from 51 to 250 hotels, now generating around £1.1 billion in annual revenue and employing around 8,300 staff across Europe.
The Sun has reached out to Revo Hospitality Group for comment.