Hotel Giant Enters Administration, Affecting 8,300 Employees
Revo Hospitality Group, Europe’s largest white-label hotel operator, has entered administration, impacting 8,300 employees across the continent. The company, previously known as HR Group, filed for insolvency, affecting approximately 140 associated companies.
Company Overview and Operational Footprint
Founded in 2008, Revo operates over 260 hotels in 12 countries and 146 cities. Some of its key markets include:
- Germany
- Austria
- France
- Czech Republic
- Spain
- Switzerland
- Hungary
- The Netherlands
- Italy
Despite the administration process, all 125 hotels in Germany and Austria will remain operational, retaining their 5,500 employees.
Causes of Insolvency
The economic climate has significantly affected the group’s financial stability. Increased wage costs, higher minimum wages, and rising expenses for rent, energy, and food have all contributed to this situation. In recent years, rapid expansion also created structural challenges within the organization.
Financial Overview
Since 2020, Revo has grown from 51 to 250 hotels and generated approximately €1.3 billion (around £1.1 billion) in annual revenue. However, new acquisitions have come with high costs. The expected growth in occupancy rates has not materialized, leading to revenue targets for 2025 being missed.
Management and Future Plans
The Charlottenburg District Court oversees the insolvency process. Administrators Dr. Gordon Geiser and Dr. Benedikt de Bruyn will manage efforts to stabilize operations and devise a restructuring plan.
In preparation for the upcoming months, the company has requested pre-financing of salaries from the Federal Employment Agency for January through March 2026.
As the situation unfolds, Revo Hospitality Group aims to address the challenges that have led to its administration while maintaining operations across its remaining hotels.
