In a significant blow to the European hospitality sector, one of the continent's largest third-party hotel operators has collapsed into administration. The Berlin-based Revo Hospitality Group, formerly known as the HR Group, has officially filed for insolvency under self-administration at the Charlottenburg district court in the German capital.
Scale of the Collapse
Founded in 2008, Revo Hospitality Group had grown to become Europe's biggest white-label operator, managing a vast portfolio of more than 260 hotels across twelve European countries and 146 different cities. The group employed approximately 8,300 staff members and operated numerous properties under major global brands including Accor, Wyndham, Hilton, Marriott, and IHG.
The insolvency proceedings affect around 140 companies within the German hotel group, marking one of the most substantial hospitality failures in recent European history. According to reports from Hospitality Inside, the group has entered voluntary insolvency with plans to restructure under self-administration this summer.
Continuing Operations and Restructuring Plans
Despite the financial collapse, approximately 125 hotels in Germany and Austria are expected to continue operating normally during the restructuring process. These properties will maintain operations with all 5,500 employees, supervised by court-appointed administrators while the rest of the group undergoes financial reorganisation.
Among the popular Revo Group hotels affected are notable properties such as the Grand Belvedere in Davos and the Pullman Berlin Schweizerhof in Berlin, both of which represent significant assets within the group's portfolio.
Causes of the Collapse
The company has cited multiple factors contributing to its financial difficulties, with increased wage costs and higher expenses for rent, energy, and food placing substantial pressure on the business. In an official statement, Revo Hospitality Group acknowledged that "above all, the strong expansion of the Revo Hospitality Group in recent years led to duplicate structures and integration problems."
This rapid growth trajectory saw the group expand from just 51 hotels in 2020 to its current extensive portfolio, creating organisational challenges that ultimately proved unsustainable amid rising operational costs.
Broader Industry Context
Revo Hospitality Group represents the latest in a series of hospitality sector insolvencies over the past year. In November, short-term rental platform Sonder initiated liquidation of its US business after Marriott terminated its licensing agreement for the Marriott Bonvoy reservation system.
The collapse follows similar incidents in the industry, including recent cases where guests were left stranded mid-stay following the failure of Marriott-linked hotel chains, highlighting ongoing challenges within the European hospitality market.
The Independent has contacted Revo Hospitality Group for further comment on the administration process and future plans for the business, though no additional statements have been released at this time.
