After flying high

Large German hotel chain has to file for insolvency

(Bild: DragonImages - stock.adobe.com)

Just last year, the Achat Group opened 14 new hotels - now the German Achat Group is bankrupt. Downstream consequences of the coronavirus pandemic, inflation and price increases are said to have driven the group into insolvency. 

The Achat Group was one of the fastest growing companies in this sector, as reported by Bild. The insolvency is to take place under self-administration - with the help of a court-appointed administrator, the company is to be put back on a stable course. 

Just last year, the hotel group had set a record year - in addition to opening many hotels, the chain had also expanded, invested in systems and structures and acquired a larger hotel portfolio in 2023.

 Company lagging behind digitally
"The downstream consequences of the coronavirus pandemic as well as the effects of inflation and price increases across all areas of the business model proved to be stress factors. The changed booking behavior of business customers and the company's ongoing digital restructuring also posed challenges," the company stated in a press release. 

The Achat Group operates around 50 hotels in Germany with 5,800 rooms and also has accommodation in Budapest. The accommodation is still open and can be booked. It is not yet known what will happen to the 1500 employees. It is also unclear whether the opening of a new hotel of the Achat secondary brand Loginn Hotels, planned for summer 2025, will take place.