Europe’s Largest Hotel Group with 260+ Sites Enters Administration
A significant shift has occurred in the European hospitality industry as Revo Hospitality Group, the continent’s largest hotel operator, has entered administration. Previously known as HR Group, Revo has been a player in the market since its establishment in 2008.
Revo Hospitality Group Overview
Revo Hospitality operates over 260 hotels in 12 European countries, spanning 146 cities. This group specializes in white-label hotel operations, meaning it manages hotels on behalf of owners without using its own brand name.
Insolvency Filing and Restructuring Plans
Recently, approximately 140 subsidiaries of Revo Hospitality filed for insolvency at the Charlottenburg District Court. The company announced plans to restructure itself under self-administration by summer.
- Approximately 125 hotels in Germany and Austria will continue operations.
- All 5,500 employees in these countries will retain their jobs during the restructuring process.
Challenges Faced by the Group
Rising operational costs have presented significant challenges for Revo Hospitality. The company cited increasing wage commitments, enhanced minimum wage requirements, and surging costs for rent, energy, and food as primary burdens.
Revo’s rapid expansion in recent years also contributed to difficulties. Duplicate structures and integration issues arose from its aggressive growth strategy.
Financial Performance and Future Outlook
At its peak, Revo Hospitality recorded annual revenues of €1.3 billion (approximately £1.1 billion) in 2020 and employed around 8,300 staff across Europe. The hotel group initially expanded swiftly but has since struggled to achieve its projected turnover for 2025 due to a shortfall in expected overnight stays.
Conclusion and Next Steps
In light of these developments, specialists have been appointed to stabilize operations and craft a comprehensive restructuring plan for Revo Hospitality Group. Stakeholders are hopeful that these measures will ensure a more sustainable future for the largest hotel operator in Europe.
