A major hotel chain with 260 hotels in 12 countries has collapsed into administration. Revo Hospitality Group, the largest hotel operator in Europe, said that more than half of its portfolio has filed for what is called "insolvency,"Time Outreports.
Some 125 hotels in Germany and Austria will continue to operate, but a restructure will take place to attract new investment, it was also reported. According toHospitality Insidea press release states that Revo Hospitality is to be restructured under its own management by the summer. It reads: "Around 140 companies belonging to the REVO Hospitality Group have filed for insolvency under their own management at the Charlottenburg District Court. The approximately 125 hotels in Germany and Austria will continue to operate with all 5,500 employees. The proceedings will be supervised by court-appointed administrators."
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It also read: "With the economic crisis, 140 companies, including the management and holding company, got into difficulties.
"In particular, increased wage costs and the sharp rise in minimum wages, but also higher costs for rent, energy and food, are weighing on the business.
"Above all, the strong expansion of the REVO Hospitality Group in recent years led to duplicate structures and integration problems."
According to the press release, Hospitality Inside also reported, the plan is to restructure the REVO Hospitality Group with a changed requirement for management services.
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The aim is to find a long-term solution for the group and the hotels it operates in order to achieve the best possible satisfaction for creditors.
Source: Daily Express :: World Feed
