August M
One of Europe’s largest hotel operators has entered insolvency proceedings, triggering a complex restructuring across several countries. While the move affects a large part of the group’s network, its hotels in Poland are expected to remain untouched.
The situation was reported by WPFinanse, citing industry and legal sources involved in the process.
Restructuring begins
Revo Hospitality Group, which operates around 250 hotels in 12 European countries, has initiated restructuring proceedings covering about 140 group companies. The process is being carried out under a self-administration model, allowing existing management to remain in control while working under court supervision.
According to the company, the restructuring mainly concerns assets in Germany and Austria. Operations in Poland are not included in the proceedings.
Attorney Dr. Gordon Geiser of GT Restructuring said the approach offers “good prospects for rapid restructuring and long-term business continuity.” He added that an application has been filed with Germany’s Federal Employment Agency to pre-finance wages for the first quarter of 2026.
Rising costs, rapid growth
Propertynews.pl reports that Revo’s financial difficulties are linked to a sharp rise in operating costs. These include higher labour expenses driven by minimum wage increases, as well as rising prices for rent, electricity and food.
The group’s aggressive expansion strategy has also played a role. Rapid acquisitions in recent years made it harder to integrate new hotels efficiently, while demand in key markets such as Germany and Austria turned out to be weaker than expected.
Despite these challenges, management says the goal is to secure a long-term solution that protects both creditors and ongoing operations.
Investor interest
Another restructuring adviser, Dr. Benedikt de Bruyn, said self-administration allows hotels to continue operating with minimal disruption. He noted that court oversight could further boost investor confidence.
“We are confident that we will be able to quickly resolve the financial problems of the affected Revo Group companies by the summer,” he said.
The group operates a mix of its own brands, including Vagabond Club, Hyperion and Aedenlife, as well as franchised hotels under major chains such as Hilton and Marriott.
Poland excluded
Revo runs six hotels in Poland under the Vienna House and Vienna House Easy brands, located in Kraków, Warsaw, Łódź, Międzyzdroje and Katowice.
Local management has stressed that these properties are legally and operationally separate from the companies undergoing restructuring.
“The financial condition of hotels in the country is very good,” said Anna Olszyńska, director of Vienna House by Wyndham Andel’s Łódź. “We are operating at full capacity, and our development plans remain valid.”
Big business, mounting pressure
Revo’s growth has been rapid, from its first hotel purchase in Leipzig in 2008 to a portfolio of 250 properties today. The group generates around €1.3 billion in annual revenue and employs about 8,300 people.
However, high acquisition costs and softer-than-expected demand have now forced a reset, with the outcome of the restructuring likely to shape the group’s future across Europe.
Sources: WPFinanse, Propertynews.pl
