Major hotel chain files for insolvency with 125 | Travel News

A significant European hotel operator has filed for insolvency proceedings, sparking considerations about what lies forward for its properties all through Europe.

Revo Hospitality Group, previously HR Group, was established in 2008 and is Europe’s largest white-label hotel operator – a third-party management company that operates motels on behalf of homeowners with out that includes its own branding.

The firm oversees more than 260 motels throughout 12 European international locations and 146 cities. The assortment consists of many motels operating underneath distinguished franchise names like Hilton and ibis Styles, in addition to its own manufacturers, together with Hyperion.

Last week, the company introduced plans to restructure by self-administration by summer season, whereas noting that motels in two nations would stay operational.

The company acknowledged: “Around 140 companies belonging to the Revo Hospitality Group have filed for insolvency under their own management at Charlottenburg District Court. 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.”

In a press release, the company clarified: “With the economic crisis, 140 companies, including the management and holding company, got into difficulties.

“In specific, elevated wage prices and the sharp (*125*) in minimal wages, but additionally increased prices for rent, vitality and food, are weighing on the business. Above all, the sturdy enlargement of the Revo Hospitality Group in recent times led to duplicate buildings and integration issues.”

Where does Revo Hospitality Group operate hotels?

The company’s properties span Switzerland, France, the Netherlands, Czech Republic, Italy, Poland and Spain, with the majority of Revo Hospitality’s hotels situated in Germany. When announcing insolvency proceedings last week, Revo Hospitality pointed to mounting costs as a major burden on operations, according to the Express.

The hotel chain purchased its inaugural property in Leipzig, Germany, back in 2008.

By 2020, it was running 51 hotels but underwent aggressive expansion in the following years, producing €1.3 billion (approximately $1.5 billion) in yearly revenue and maintaining a workforce of around 8,300 employees throughout Europe, based on reports.

The group explained: “The acquisition of the new motels concerned appreciable prices. On the opposite hand, the quantity of in a single day stays didn’t increase as anticipated and the deliberate turnover for 2025 was not achieved.”

Specialists have been enlisted to regular operations and develop a restructuring strategy.