European white label hotel operator Revo Hospitality has filed for insolvency.
The company, formerly known as HR Group, is to be restructured under self-administration by the summer.
The operation of the approximately 125 affected hotels in Germany and Austria will continue with all of their roughly 5,500 employees. The proceedings will be overseen by administrators appointed by the Charlottenburg District Court.
Revo Hospitality operates a total of 250 hotels in 12 European countries and 135 cities under its own brands and as a franchisee for international hotel chains. It is not clear exactly what will happen to the other 125 hotels.
Around 140 separate entities are part of the administration with a company statement citing increased labour costs and the significant rise in minimum wages, as well as increased costs for rent, energy, and food, are impacting the business.
Revo Hospitality started life in 2008 and expanded over the years, reaching 51 hotels by 2020. Then came a period o rapid expansion, which is likely to have put pressure on the company’s finances. Subsequently, the group expanded significantly to its current 250 hotels, generating annual revenue of €1.3 billion and employing approximately 8,300 people. As well as increased costs associated with expansion, it is understood that the number of overnight stays did not increase as expected, with the projected revenue figure for 2025 not achieved.
What they said
"With the insolvency proceedings for the approximately 140 companies, which have been initiated primarily under self-administration, there are good prospects for a swift restructuring and long-term continuation. We will immediately stabilize operations and implement initial restructuring measures in consultation with key stakeholders. We have applied to the Federal Employment Agency for pre-financing of salary payments for the months of January to March 2026," said Gordon Geiser of GT Restructuring, who, together with his colleague Dr. Benedikt de Bruyn has been appointed managing director of the respective companies for the duration of the self-administration proceedings.
This is a breaking news story and will be updated as and when more information arrives