Breaking News: Revo Hospitality has been broken up

The insolvency lawyers handling the Revo Hospitality case are working on the 121 insolvent companies for which proceedings have now officially commenced. 25 hotels have a new operator. Two administrators are in talks with potential buyers, a group which is believed to include Ruslan Husry. Such progress could still all amount to nothing though.

Dear Insider,

Things are really heating up in the industry at the moment. Sircle Group and Revo Hospitality are finding themselves increasingly mired in negative headlines, and their misconduct is no longer an isolated incident. No, their behaviour is becoming the norm – and not just in Germany, but across Europe and internationally. Property owners and landlords are facing empty coffers. The only recourse left is the courts, which Deka Immobilien and Pandox are now also turning to. Everyone wants their rent arrears, in some cases amounting to millions.

As my colleague Sarah Douag has noted, the Sircle case – involving over € 30 million in lost rent – is the largest to date, the longest-running and the most structurally complex. Revo's debts are not yet known.

Gradually, a picture is emerging of a chain that begins with a complex web of holding companies, through which subsidiaries apparently pass on fees and other revenue through so many layers that, by the time it reaches the owner at the end of the chain, no money remains. Insiders are familiar with such "intercompany structures", which are often set up for the purpose of money laundering. Landlords will therefore be under greater pressure than ever before to monitor the tenant and their behaviour. Furthermore, the so-called 'good old' sale-and-leaseback process needs to be redefined; at present, when misapplied, it is one of the root causes of the problem. Dive right into this fascinating article.

Three weeks ago, Revo Hospitality Group filed for insolvency under self-administration. The industry still feels like it is in turmoil and there are still many unanswered questions. Yesterday, the first official reassuring email was sent out. Regardless of this, hospitalityInside has begun to compile a list of the hotels affected – with updates.

Revo Hospitality Group currently operates around 220 hotels, it corrected after an inquiry from hospitalityInside. Today, we can provide additional transparency with a current list of around 150 insolvent companies! We also asked Anchor, a neutral insolvency law firm, whether the measures taken at Revo comply with standard procedures. And Wyndham admits to having invested $160 million in Revo.

Emotions ran high after Revo Hospitality filed for insolvency under its own administration exactly one week ago. 140 companies are up for grabs. Today, we summarise the facts and do not seek apportion blame. We will examine the collapse of Europe's largest white label operator AND the mistakes made by the industry in the coming weeks. Part 1.

Revo Hospitality files for insolvency under self-administration. 140 companies are affected. 125 hotels will continue to operate. The group issued a press release to this effect a few minutes ago. This marks the worst-case scenario that founder Ruslan Husry was desperate to avoid. This news is likely to shake the German hotel market.