Wyndham has taken ownership of two Swiss hotels that were formerly part of the collapsed Revo Hospitality Group.
It’s an unusual move for a company focused on franchising but appears born out of necessity.
“As part of our efforts to pursue all available remedies related to Revo's ongoing insolvency proceedings and optimize the recoverability for our shareholders, we exercised our rights during the first quarter to foreclose on and take ownership of two properties in Europe that were previously owned by Revo,” said chief financial officer, Amit Sripathi.
“We expect these properties to generate approximately $10 million of net revenues in full year 2026 with a limited impact to earnings as we work to stabilize operations and implement an asset management plan to maximize value.”
The hotels in question are: the H+ Hotel & SPA Engelberg and the H4 Hotel Arcadia Locarno.
Sripathi added that the properties had a gross value of $36 million with a net asset value of $23 million.
“Our plan is to stabilize and improve profitability of these two assets as we kind of explore strategic options for them,” Sripathi said.
Revo’s insolvency has sent shockwaves through the European hotel investment industry, particularly in central Europe where the lease model remains a popular option in some ownership structures.
Other real estate related highlights:
- Focus on costs – Wyndham emphasised its ability to lower costs for owners, a key point in today’s inflationary environment. "Developers are increasingly noting that our best-in-class technology, powered by providers like Sabre, Oracle, Salesforce, Canary Technologies is making our brands ever more efficient and less expensive to operate and that our rapidly expanding AI-enabled shared service approach is lowering their breakeven point and making their hotels more profitable to run," said CEO Geoff Ballotti
- Extended stay demand – We know extended stay has been a big winner post-Covid, especially in the US market and Wyndham is emphasising its importance. The company’s pipeline is up over 4 per cent year-over-year to a record 45,000 rooms. Wyndham reckons demand is outstripping supply by 3 times.