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Home - Business - Revo Hospitality Group Seeks Insolvency Protection as Costs Skyrocket

Business

Revo Hospitality Group Seeks Insolvency Protection as Costs Skyrocket

CTN News
Last updated: January 21, 2026 7:44 am
CTN News
2 hours ago
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BERLIN, Germany – Revo Hospitality Group, previously known as HR Group and one of Europe’s biggest multi-brand hotel operators, has applied for insolvency protection through self-administration. The filing went in on January 16, 2026, at Berlin’s Charlottenburg District Court, and covers around 140 companies in the group.

This process is similar in principle to the US Chapter 11, in that it lets the business keep trading while it restructures. Revo says the plan is to complete a broad turnaround programme by summer 2026.

Revo runs a large portfolio of more than 260 hotels across 12 European countries and 146 cities. It works with well-known brands including Hilton, Marriott, and Accor.

The group rebranded in April 2025, linking the name “Revo” to the idea of a fresh start in hospitality. Since 2020, it expanded quickly, growing from 51 hotels to today’s footprint. It reports annual revenue of about €1.3 billion and employs roughly 8,300 people.

In Germany and Austria, around 125 hotels and about 5,500 employees are expected to continue working as normal while the restructuring runs, under court supervision.

Regulations and wage rises add to the strain

In its statement, the group pointed to a mix of pressures that have hit profitability hard. It highlighted tighter rules, rising wage bills, and a sharp jump in minimum wages. On top of that, it’s dealing with higher costs for rent, energy, and food, all while Germany’s economy remains weak.

Across Europe, hotels have faced stubborn inflation since travel picked up after the pandemic. For Revo, the crunch seems to have come when the required cost increases rose faster than income.

Staffing costs have moved up quickly, driven by higher minimum wages and stricter labour rules in key markets such as Germany and Austria. Hotels depend on large teams for housekeeping, reception, food service, and maintenance, so even small increases add up fast.

Energy prices have also stayed high, linked to geopolitical tension and supply issues. Food costs remain elevated, too, affected by supply chain problems and changing commodity prices.

Rent has been another problem, especially in city centres where leases are expensive and harder to rework. Revo’s filings and reports point to “increased wage costs and the sharp rise in minimum wages, but also higher costs for rent, energy and food” as major reasons the group ran into trouble.

Revo Hospitality Group restructuring

Revo’s insolvency filing underlines a bigger issue in the European hotel sector. Many operators expanded during years of low interest rates, then ran into tougher conditions as borrowing costs rose and everyday expenses climbed.

The group’s model, operating hotels under third-party brands, gives flexibility. It can also mean extra pressure from franchise fees and performance targets.

Revo says guests should expect business as usual at its hotels during the process. Even so, the situation brings uncertainty for staff, suppliers, and partners. Court-appointed supervisors will oversee the self-administration, and the group must put forward a workable plan or attract new funding within the legal timeframe to avoid deeper action.

Some industry watchers see similarities with challenges elsewhere, including in Thailand, where wage changes have also raised concerns among operators. Local groups there have warned that forced cost jumps can lead to job cuts or closures.

Revo’s management says it expects to come out stronger. Self-administration gives it time to renegotiate contracts, review which hotels make sense to keep, and seek fresh investment. If the plan works, the group could be better placed for growth once conditions settle.

For now, the case is a clear sign of how quickly cost pressures and regulation can hit the hospitality sector. Guests with upcoming stays at Revo-managed hotels should keep an eye on official updates, even as properties continue operating.

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TAGGED:bankruptcy protectionCharlottenburg District CourtEuropean hotel bankruptcyfood price surge hospitalityGermany Austria hotelshospitality energy costshotel operator insolvencyHR Group rebrandinsolvency filingminimum wage rise Germanymulti-brand hotel operatorrent inflation hotelsRevo Hospitality GroupRevo Hospitality restructuringself-administration insolvencywage costs increase
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