Bankruptcy worth billions of dollars: A giant hotel company with 250 hotels announces its bankruptcy - 5,500 jobs at risk
REVO Hospitality, one of the largest multi-brand hotel operators in Europe, has filed for bankruptcy for around 140 of its companies, affecting about 125 hotels in Germany and Austria and threatening 5,500 jobs.
The group will continue to operate with all employees during the restructuring process. GT Restructuring, which manages bankruptcy cases, has taken over the management of the affected companies. Attorney Gordon Geiser explained that the procedures, which are mostly self-managed, offer good prospects for rapid recovery and long-term operational continuity, with plans already in place to stabilize operations and implement the first reform measures. The company has requested salary funding in advance from January to March 2026 from the Federal Employment Agency.
REVO operates around 250 hotels in twelve European countries and 135 cities, under its own brands and as a franchisee for well-known global hotel chains. The rapid growth of the company – from its first hotel in Leipzig in 2008 to 51 hotels by 2020 and now 250 hotels – has led to structural challenges and integration issues. Additionally, rising wages, increased minimum wage, and costs of rent, energy, and food, along with occupancy rates lower than expected, have weighed on finances, resulting in not achieving revenue targets for 2025.
Restructuring experts Gordon Geiser and Dr. Benedict de Bruin, in collaboration with court-appointed trustees and the creditors' committee, are planning to attract international investors. The self-administration process allows for the stabilization of the business and its orderly transition to a new investor without significantly affecting the operation of the hotels.
Analysts estimate that in the case of a typical repayment of 15% under self-managed bankruptcy proceedings, suppliers, property owners, and business partners could incur significant financial losses amounting to tens of millions of euros. The group hopes to resolve the economic issues of the affected companies by the summer of 2026.