A German lodge group has simply filed for chapter, and it may have main implications for Hyatt’s presence in Germany, as flagged by Frankfurtflyer.
Lindner Lodges has severe monetary points
German lodge group Lindner Lodges AG has simply filed for chapter in Dusseldorf District Courtroom, so the corporate is opening insolvency proceedings beneath self administration. Lindner manages over 30 accommodations in Europe, with most of its properties being in Germany. Nonetheless, solely 13 of the properties are literally owned by Lindner, and are due to this fact impacted by the insolvency.
Because it impacts the miles & factors world, in 2023 we noticed Hyatt and Lindner launched a partnership, whereby Lindner properties have been built-in into World of Hyatt. What I discover fascinating is that a number of months again, Hyatt acquired the me and all accommodations (sure, it’s lowercase) from Lindner, in order that received’t be impacted by this.
Monetary statements from Lindner present that the lodge group misplaced round 10 million EUR in every of 2020 and 2021, with the corporate’s downfall being blamed on costly lease agreements with very lengthy phrases, making it laborious for the corporate to cease working unprofitable accommodations.
With the corporate submitting for insolvency, we’ll see if Lindner can negotiate down these prices in a means that permits accommodations to proceed working, or what precisely occurs. A lot of the main world lodge teams don’t truly personal a overwhelming majority of their properties, however as you may see, Lindner does personal lots of its properties, so that may pose a significant problem when the accommodations aren’t doing effectively.
What does this imply for the Hyatt partnership?
In the intervening time, Lindner properties will proceed to function as earlier than. Nonetheless, Germany doesn’t have the identical Chapter 11 chapter safety legal guidelines we’ve in america, the place firms can usually simply shed some debt and resume enterprise as ordinary.
So solely time will inform how this performs out, given the intense structural points the corporate has. Can Lindner renegotiate some contracts? May the corporate’s property be acquired by one other investor? Solely time will inform.
For now it’s enterprise as ordinary, however I’d perhaps be cautious about making any non-refundable or pre-paid bookings. If you happen to’re this from the Hyatt facet, needless to say me and all accommodations is now owned by Hyatt quite than Lindner, in order that must be secure, and never impacted by this case.
Backside line
Lindner Lodges AG has filed for insolvency, because the lodge group has been dropping cash, largely because of some long run leases of properties that haven’t confirmed to be worthwhile. Whereas the lodge group is continuous to function in the meanwhile, the long run is kind of unsure, so we’ll see how this evolves…
What do you make of this Lindner Lodges scenario?
