Emil Martesen
The sudden move has raised questions among travellers, but the full impact may not be what many expect.
Bankruptcies are, unfortunately, a fact of life.
In some cases, they affect customers who have paid in advance for goods or services; in others, the consequences are more limited.
Now, Europe’s largest hotel operator has filed for insolvency – a move that has attracted significant attention.
At the same time, there are strong indications that guests with existing bookings do not need to be concerned for the moment.
The company in question is Revo Hospitality Group, a name that may not mean much to the average Swedish traveller.
However, the group operates hotels under franchise agreements for well-known brands such as Hilton, Radisson and Holiday Inn.
This is reported by Handelsblatt.com.
According to several industry publications, around 140 companies within the group have filed for insolvency under self-administration at the Charlottenburg District Court in Berlin. Hotel operations are reportedly continuing throughout the process.
What this means for guests with bookings
For travellers, the obvious question is whether already booked stays will still go ahead.
Revo has stated that operations will continue and that existing bookings will not normally be cancelled as a result of the insolvency proceedings.
That said, the situation may vary from hotel to hotel, particularly if properties change operators or individual units are sold – scenarios that have been mentioned as part of the ongoing restructuring.
The background to the crisis mirrors challenges faced by much of the hotel industry since the pandemic. In Revo’s case, the situation has been compounded by a period of very rapid expansion.
According to reports, the group grew from around 51 hotels in 2020 to approximately 250 today, while costs for wages, energy, food and rent have risen sharply.
For guests with upcoming stays, several travel magazines advise taking a cautious approach.
This includes contacting the hotel directly ahead of arrival, opting for flexible cancellation terms when making new bookings, and using payment methods that offer buyer protection should the situation change.
