Germany/Austria: White label hotel management company Revo Hospitality, formerly known as HR Group, has filed for insolvency and is to be restructured under its own management by the summer.
The company cited “increased wage costs and the sharp rise in minimum wages, but also higher costs for rent, energy and food” as contributing factors to the insolvency. “Above all, the strong expansion of the Revo Hospitality Group in recent years led to duplicate structures and integration problems,” it said.
In 2008, Revo (then known as HR Group) took over its first hotel in Leipzig. By 2020, the group operated 51 hotels and then expanded to its current 250 properties.
“The acquisition of the new hotels involved considerable costs. On the other hand, the number of overnight stays did not increase as expected and the planned turnover for 2025 was not achieved,” the company said.
Approximately 125 hotels in Germany and Austria are affected, including 5,500 staff members. All will continue to operate during the restructuring.
Revo has applied to the Federal Employment Agency for pre-financing of salary payments covering January to March 2026, with the aim of ensuring payroll continuity.
Gordon Geiser and Benedikt de Bruyn of GT Restructuring will oversee the self-administration proceedings. Geiser and de Bruyn plan to approach international investors to find a “long-term solution… in order to achieve the best possible satisfaction for creditors.”
“Self-administration enables rapid stabilisation and an orderly transition to an investor without significantly restricting the numerous hotel operations,” said de Bruyn. “With the initiation of insolvency proceedings, the interest of investors, which has been noticeable to date, is likely to increase even further. We are therefore confident that we will be able to quickly resolve the economic problems of the affected companies of the Revo Group by the summer.”
It is unclear how the insolvency will affect the wider portfolio, which includes city hotels and serviced apartments operated under Revo’s own brands as well as franchise agreements with hotel chains. The two largest franchisors are Wyndham and Accor.
Highlights:
- White-label hotel operator Revo Hospitality (formerly HR Group) has filed for insolvency in Germany and Austria, with restructuring planned under self-administration by summer 2026
- Around 125 hotels and 5,500 employees across the two countries are affected, with all properties continuing operations during proceedings
- The group cited rising wage, rent, energy and food costs, alongside rapid expansion and duplicated structures, as key factors behind the insolvency
- Revo grew from 51 hotels in 2020 to approximately 250 properties, but overnight stays and projected 2025 revenues fell short of expectations
- Restructuring will be overseen by GT Restructuring, with efforts underway to secure international investors and ensure payroll continuity via state-backed pre-financing
