Lindner Hotels, a German hotelier affiliated with Hyatt, has filed for bankruptcy after losing millions in the past few years.
At least for now, the bankruptcy only affects Lindner’s 13 hotels in Germany out of the 30 or so that bear its name.
You can access Lindner Hotels here.
The company blames high rents (who negotiated them?), high energy costs, and Covid-19 related travel slump (is it still around) for the insolvency, but the real blame must be the mismanagement.
The insolvency administrator has informed 900 or so employees who are currently employed by the company in Germany.
.Conclusion
These European bankruptcies are not as clear-cut as those in the US, where the companies that renegotiate their debt usually end up pretty much the same as before (look at most of the US airlines that have gone through several bankruptcies).
In Europe, the company may be wholly liquidated, and these insolvencies are not looked at favorably as in the US.
These Lindner Hotels in Germany continue to operate for now, but there can be surprise hotel exits if the owners of these buildings are not satisfied with the haircuts they need to take and can find someone else to take over the operations and reflag the property.
