Revo Hospitality Group, Europe’s leading white-label hotel operator, has announced it is entering administration. The firm manages over 260 hotels across 12 countries, impacting approximately 8,300 employees.
Overview of Revo Hospitality Group
Founded in 2008, Revo Hospitality Group, previously known as HR Group, is a major player in the European hotel industry. The company operates in 146 cities across countries such as:
- Germany
- Austria
- France
- Czech Republic
- Spain
- Switzerland
- Hungary
- Netherlands
- Italy
Insolvency Filing
Recently, about 140 companies under the Revo umbrella filed for insolvency with the Charlottenburg District Court. Despite this, all 125 hotels in Germany and Austria will remain open, employing roughly 5,500 staff.
Reason for Administration
Several factors have contributed to the group’s financial troubles:
- Rising wage costs and minimum wage increases
- Increased expenses related to rent, energy, and food
- Challenges arising from rapid expansion over recent years
The rapid growth from 51 to 250 hotels post-2020 came at a considerable financial cost. This expansion led to duplicated structures and operational challenges, impacting profitability.
Financial Performance
Revo Hospitality Group is generating approximately €1.3 billion (about £1.1 billion) in annual revenue. However, issues with occupancy growth and unfulfilled revenue targets for 2025 have raised concerns among stakeholders.
Restructuring Efforts
To stabilize operations, Revo has enlisted the expertise of restructuring specialists Dr. Gordon Geiser and Dr. Benedikt de Bruyn. They will develop a comprehensive restructuring plan aimed at revitalizing the organization.
Next Steps
Revo has also requested pre-financing for staff salaries from January to March 2026 from the Federal Employment Agency. This support is crucial for maintaining employee morale during these challenging times.
As the situation unfolds, Revo Hospitality Group aims to navigate its challenges and emerge stronger from this restructuring process while continuing to serve its guests across Europe.
