A prominent hotel operator in Europe has announced its insolvency, raising concerns about the future of its properties across the continent. Revo Hospitality Group, formerly known as HR Group, was established in 2008 and is recognized as the largest white-label hotel operator in Europe, managing hotels on behalf of owners without its own branding.
The company oversees a portfolio of over 260 hotels in 12 European countries and 146 cities. It recently disclosed plans for a restructuring process through self-administration by summer, while confirming that hotels in two countries will remain operational.
According to the company, approximately 140 entities under the Revo Hospitality Group have filed for insolvency under their management at Charlottenburg District Court. Despite this, the 125 hotels in Germany and Austria will continue to operate with their 5,500 employees under the supervision of court-appointed administrators.
Revo Hospitality Group operates hotels under various franchise names such as Hilton and ibis Styles, in addition to its own brands like Hyperion. The properties are situated across Switzerland, France, the Netherlands, Czech Republic, Italy, Poland, and Spain, with a significant presence in Germany.
The decision to declare insolvency was attributed to rising expenses that have strained the company’s financial health. The company highlighted increased wage costs, minimum wage hikes, and escalated expenses for rent, energy, and food as major challenges. Furthermore, the rapid expansion of the group in recent years led to duplicate structures and integration issues.
Having acquired its first property in Leipzig, Germany, in 2008, the group managed 51 hotels in 2020 but expanded rapidly afterward. Reports indicate an annual turnover of €1.3 billion (approximately £1.1 billion) and a workforce of around 8,300 employees across Europe. Efforts are underway to stabilize operations and develop a restructuring strategy to navigate the current crisis.
