Wyndham Takes $160 Million Hit After European Franchisee Files for Insolvency

Wyndham said Wednesday that it booked $160 million in charges tied to the mid-January collapse of its largest European franchisee, Revo Hospitality Group.

Why it matters: The charge was a reminder of the unpredictability of the hotel industry’s asset-light business model, in which hotel groups like Wyndham don’t own the hotels they market to guests.

The backstory: Revo is a Berlin-based operator that manages roughly 22,000 rooms under Wyndham and other brands. Revo filed for self-administration — the German equivalent of Chapter 11 bankruptcy — in January after a rapid expansion spree collided with rising costs and weaker-than-expe