A European hotel group with hundreds of hotels under its management filed for bankruptcy in Germany. This is the Revo Hospitality Group, formerly HR Group, which filed for a self-administered bankruptcy petition at the Charlottenburg Regional Court in Berlin this week.
The Revo Group was founded in 2008 and became the largest white-label hotel manager in Europe, with a portfolio that includes over 260 hotels and approximately 8,300 employees in 12 European countries and 146 cities.
Approximately 140 companies in the German hotel group are affected.
Several of the group’s hotels belong to large, international chains, such as Accor, Wyndham, Hilton, Marriott, and IHG.
The hotel group will declare voluntary bankruptcy, with restructuring plans under its own management this summer.
According to local press, 125 hotels in Germany and Austria are expected to continue operating, while the rest of the group will undergo financial restructuring.
In 2020, the hotel group experienced rapid expansion from just 51 hotels.
The popular hotels of the Revo Group include the Grand Belvedere in Davos and the Pullman Berlin Schweizerhof in Berlin.
In its announcement, the hotel group states: “Approximately 140 companies belonging to the Revo Hospitality Group have filed for bankruptcy under self-administration at the Charlottenburg District Court,” according to Hospitality Inside.
“The approximately 125 hotels in Germany and Austria will continue to operate with their 5,500 employees. The process will be overseen by court-appointed administrators,” he adds.
According to the update, “the increase in salary costs and the increase in rent, energy, and food costs significantly affected the business.”
The announcement also notes: “Above all, the strong expansion of Revo Hospitality Group in recent years has led to integration problems.”
The hotel group is the latest to enter into insolvency proceedings. In November, short-term rental platform Sonder began the process of winding down its operations in the US after Marriott announced that the licensing agreement for Sonder’s use of the Marriott Bonvoy booking system had expired.
