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English Sectoral

Hotel chain Star Inn slips into bankruptcy

The tourism industry is still suffering from the consequences of the corona pandemic.

in Sectoral
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Hotel chain Star Inn slips into bankruptcy

Now a well-known Austrian chain has to file for bankruptcy. Nevertheless, she hopes to secure the operation permanently.

Just last year, the German Star Inn hotels had to close forever after their insolvency. Hotels in Karlsruhe, Stuttgart, Bremen, Heidelberg, Frankfurt, Regensburg and Unterschleißheim near Munich were affected.

Now it also affects the Austrian parent company, Star Inn Hotelbetriebs GmbH. Insolvency proceedings were opened at the Vienna Commercial Court on Monday, according to an official statement. Specifically, it is about a restructuring without self-administration, i.e. by an external insolvency administrator.

Corona pandemic caused sales to collapse

As with the German Star Inn hotels, the reason for the insolvency is the effects of the corona pandemic. According to the bankruptcy application, which was quoted by several media, the loss of sales could “not be compensated for completely and only with a considerable time lag”.

In addition, there was “a blatant shortage of staff”, the operation in the hotels could not be ramped up in the spring as was intended, it is said.

Accordingly, “talks about an investor entry are already well advanced”. However, a former franchise business partner asserted claims so that the company had to file for insolvency.

Hotels should continue to operate

The bankruptcy will affect 101 jobs, but the company hopes to secure its future. Negotiations are currently being made with a large German hotel chain about a sale or entry. The talks have been going on “for a long time”. It is not clear which chain it is.

In any case, the operation was not affected by the renovation. “All hotels will continue to operate normally and are available to guests without restrictions,” it said in a statement. The chain operates eight hotels in Vienna, Linz and Salzburg.

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