Lindner Hotels AG, a hotel group based in Düsseldorf, has filed for insolvency under self-administration to restructure itself sustainably using the legal tools available under insolvency law. As the company continues its efforts to recover, a key question arises: what will be the implications of this procedure on its strategic partnerships, particularly its partnership with Hyatt?
Context of insolvency: a challenging economic environment
Lindner Hotels AG finds itself in this situation after going through a period of accumulated economic difficulties. Despite strategic management and restructuring efforts in recent years, the company has been unable to generate enough revenue to meet its financial obligations. The COVID-19 crisis, followed by the war in Ukraine, has intensified the group’s financial problems, while costs related to rent, energy, materials, and interest rates have continued to rise.
Frank Kebekus, in an official statement, clarified that the request for self-administration was an economically and strategically necessary decision to ensure sustainable restructuring and to preserve opportunities for a solid future for the company’s concepts in the medium and long term.
Maintaining hotel and business operations
Despite the insolvency procedure, Lindner Hotels AG has assured that hotel and business operations will continue as smoothly as possible. This includes all of the company’s sites, with minimal impact on daily activities. Employees, around 650 staff members, 96 apprentices, and 100 temporary workers, have been informed of the measures taken, and it has been emphasized that other entities within the group, such as Lindner Lifestyle Hotels GmbH (me and all) and 7Pines/L Collection, are not affected by this procedure. No insolvency filing has been made for these establishments, and they continue their operations normally.
Moreover, five hotels under construction under the me and all brand, as well as the already established hotels of Lindner Lifestyle Hotels GmbH, including 7Pines/L Collection hotels in Europe and the United States, are not affected by this insolvency procedure.
Impact on the partnership with Hyatt and World of Hyatt
The independence of Lindner hotels within the Joie de Vivre by Hyatt (JdV) program and the me and all brand (now an independent brand within Hyatt’s Lifestyle portfolio) allows World of Hyatt members to continue enjoying membership benefits, including the ability to accumulate points and receive benefits in participating hotels.
Since 2022, Lindner & Resorts hotels have been part of the JdV by Hyatt network, allowing customers to make reservations through Hyatt platforms and benefit from exclusive advantages.
In June 2023, a Hyatt subsidiary also acquired the me and all Hotels brand in order to accelerate its international expansion. Unlike the hotels under JdV by Hyatt, the me and all hotels are now fully autonomous but remain connected to the Hyatt group through the World of Hyatt program, where stays at these establishments are now considered separate events in the Brand Explorer promotion.
