Revo Hospitality Group Insolvency Shakes Europe’s Hotel Sector

Europe’s hotel industry was rocked this January by the insolvency filing of Revo Hospitality Group, the continent’s largest multi-brand hotel operator and a linchpin in the region’s hospitality scene. The move, which affects roughly 140 companies within the group and about 125 hotels in Germany and Austria, signals a dramatic turn for a company that, until recently, was synonymous with aggressive growth and industry dominance.

According to CoStar News and Metro, Revo Hospitality Group—formerly known as HR Group—filed for insolvency under self-administration at the Charlottenburg District Court in Berlin on January 16, 2026. This legal maneuver, a distinctly German approach, allows a company to restructure while maintaining control over daily operations, all under court supervision. The aim is to avoid abrupt closures and keep the business running while a rescue plan is hammered out.

The group’s meteoric rise began in 2008 with a single hotel in Leipzig. By 2020, it had expanded to 51 properties. Then, in a post-pandemic push, Revo embarked on a rapid expansion spree, growing its portfolio to over 250 hotels (some reports say 260) across 12 European countries and 146 cities. The company became a powerhouse, managing hotels under its own brands—like Hyperion, Vagabond Club, and Aedenlife—as well as for international giants such as Hilton, Marriott, Accor, Wyndham, and IHG.

But what goes up must come down, and Revo’s breakneck growth soon outpaced its ability to integrate and manage its sprawling empire. As Metro reported, “above all, the strong expansion of the Revo Hospitality Group in recent years led to duplicate structures and integration problems.” These internal inefficiencies, combined with a sharp rise in costs and weaker-than-expected demand, created a perfect storm.

Financial warning signs began flashing as early as September 2025, when payment difficulties surfaced. The situation escalated dramatically when overnight stays in 2025 fell short of internal forecasts, leaving a gaping hole in expected revenues. At the same time, the group was grappling with increased wage costs—driven by minimum wage hikes—along with higher expenses for rent, energy, and food. As a result, liquidity dried up, and the company was unable to bridge the funding gap through cash flow or additional borrowing.

In the days leading up to the insolvency filing, strategic partner Accor temporarily suspended booking systems for Revo hotels—a move that sent shockwaves through the industry. Such drastic action is typically reserved for cases where contractual obligations or payment deadlines have been missed for extended periods. For a company so reliant on global booking platforms, this was a massive operational blow. Fortunately, after the initiation of self-administration proceedings, these systems were reopened, ensuring that sales and online reservations for affected hotels could continue.

Despite the turmoil, Revo has been adamant that hotel operations will continue in full during the restructuring. The approximately 5,500 employees at the 125 affected hotels in Germany and Austria have been assured of job continuity, at least in the short term. To stabilize operations and guarantee salaries through March 2026, the company applied for pre-financing of insolvency payments from Germany’s Federal Employment Agency—a move confirmed by TravelDailyNews International.

To steer the group through these choppy waters, lawyers Gordon Geiser and Benedikt de Bruyn from GT Restructuring have been appointed as managing directors of the affected companies. Their mandate is to develop a viable restructuring plan in close consultation with key stakeholders, including property owners, banks, and suppliers. The goal? To transfer the profitable parts of the company to new investors and complete the economic restructuring by summer 2026.

Industry observers, cited by Thomas Daily, note that Revo’s high-quality portfolio remains attractive to private equity firms and rival hotel groups. However, the supplier industry and real estate sector are viewing the proceedings with concern. In restructurings of this scale, unsecured creditors—such as suppliers, service providers, and property owners—often face significant losses. Industry-standard recovery rates in comparable cases are frequently only about 15 percent of original claims, meaning many partners could suffer multimillion-euro setbacks.

The ripple effects extend beyond Revo’s immediate circle. The group’s collapse is expected to lead to consolidation across the European hotel market. The business model where a single operator manages numerous hotels under various international chain banners is now under intense scrutiny from banks and investors. As CoStar News put it, Revo’s crisis “demonstrates that size alone is no guarantee of stability in a volatile market if operational integration fails to keep pace with the acquisition rate.” Future leases and financing agreements are likely to face stricter scrutiny as a result.

For consumers, the immediate impact is less dramatic, though not negligible. Bookings with departures until the end of March 2026 are likely to be honored, according to Metro. However, travelers are advised to check directly with their hotels for updates, as changes in ownership or management could affect reservations. Customers who paid by credit card may have recourse to chargebacks or Section 75 claims if services aren’t delivered.

Revo’s troubles are not unique. The insolvency comes amid a broader wave of distress in the travel and hospitality sector. Other companies—including Regen Central Ltd, Jetline Holiday, and several smaller operators—have also entered insolvency or liquidation in recent weeks. The combination of rising costs, shifting consumer demand, and the lingering aftershocks of the pandemic has left many businesses vulnerable.

Still, there is a glimmer of hope. The self-administration process is designed to give viable companies a fighting chance at recovery. By allowing Revo to keep its doors open and its staff employed, the process buys time for a potential investor to step in and for the group to shed unprofitable assets. As restructuring expert Gordon Geiser explained, self-administration “swiftly stabilizes operations and facilitates a smooth handover to an investor.”

Whether Revo can emerge from insolvency as a leaner, more resilient player—or whether it will be carved up and sold off in pieces—remains to be seen. The coming months will be decisive, not just for Revo’s thousands of employees and business partners, but for the future shape of Europe’s hotel landscape. For now, the lights remain on, the guests keep coming, and the industry holds its breath, waiting to see who will check in next.