Insolvency shock for the Strudlhof Hotel: 550,000 euros in debt!

Insolvency shock for the Strudlhof Hotel: 550,000 euros in debt!

Pasteurgasse 1, 1090 Wien, Österreich - The renowned hotel "Strudlhof" in the Vienna district of Alsergrund is insolvent and thus slips into a difficult financial situation. As meinzirk.at , the insolvency proceedings on the assets of L7 GmbH were opened. Despite acceptable operating results, the company could not remove the over -indebtedness of 550,000 euros. Affected people are eleven employees and around 30 creditors who can register their claims by August 13th.

The main reasons for the bankruptcy are the aftermath of Corona pandemic and the termination of the lease agreement, which significantly deteriorated the operational framework conditions. A renovation of the company is currently not planned, whereby a temporary continuation of the hotel operation should be carried out until the lease is expired. This is particularly unfortunate because the history of the hotel is deeply rooted in the traditional Vienna culture; The building, which was built in 1975, is directly related to the original Strudelhof from 1690.

economic background and pandemic sequences

The hotel sector in Austria has suffered greatly in recent years through Corona pandemic. According to Today.at did not survive 16 percent of the hotels. Small family -run companies in particular were forced to let lease contracts expire or to stop operating. Dominic Schmid, specialist group chairman in the Vienna Chamber of Commerce, found that leasekeeping needs at least 75 percent to work economically, and that even 60 percent in summer are not enough to cover the costs.

Economic recovery is tedious, especially in urban areas such as Vienna. In 2020, the number of overnight stays was only 4.9 million compared to 17.6 million in 2019. While the city hotel industry gets more slowly, companies can continue to apply for state aids such as credit guarantees and short-time work, which will soon expire.

connection with other bankruptcies

The situation of the hotel "Strudlhof" is not unique. Other hotel operators, such as the first Vienna Hotel-Aktiengesellschaft, have also filed for bankruptcy. This society belongs to the Austrian-Saudi businessman Scheich Mohamed bin Issa al Jaber and is, among other things, operator of the Grand Palais Shopping Mall on the Carinthian Ring. Kurier reports that the bankruptcy was opened at the request of a creditor and that the company has high liabilities of over 44 million euros. However, the affected Grand Hotel Gesellschaft mbH, which is also part of the first Vienna Hotel-Aktiengesellschaft, remains insolvent.

The hotel "Strudlhof" could be the next examples of the economic challenges in the domestic hospitality industry. The uncertainties about ownership and the insufficient recovery of tourism increase the already tense conditions. The future remains uncertain, both for employees as well as for the creditors and the future everyday life in one of the most traditional hotels in Vienna.