Internal restructuring
Eesti; Põhja-Eesti;
Location of affected unit(s)
Hotel / Restaurants
Accommodation And Food Service Activities
55.1 - Hotels and similar accommodation

35 - 190 jobs
Number of planned job losses
Job loss
Announcement Date
7 May 2020
Employment effect (start)
7 May 2020
Foreseen end date
7 June 2020


Hestia Hotel Group will lay off 190 employees in Estonia, throughout a collective dismissal programme. The reason for the dismissals is the COVID-19 outbreak, resulting in containment measures that led to a collapse in tourism. Two hotels in Estonia remained opened, one was partially opened as of 1 May 2020, and it is not yet sure how many of the other four hotels will be opened in the future. Altogether, the turnover of Hestia decreased by 90-100%. The company made use of the national wage subsidy designed to alleviate the crisis caused by the COVID-19 outbreak, but it is not enough to avoid the dismissals as the recovery of the whole sector will be slow.

The chain has 7 hotels in Estonia and 2 in Latvia. At peak-times, the group employs 500 persons in Estonia and Latvia; the exact figure for Estonia is unknown. Around 40 employees will be made redundant in Latvia as well.

Update, 18.06.2020:On 10 June 2020, it was announced that all 7 hotels in Estonia will reopen in June and the number of employees to be laid off will be considerably reduced down to 35. As the COVID-19 restrictions have been relaxed and the number of tourists is already growing, the Hestia Hotel Group admits their forecast underestimated the actual developments after the crisis. The company admits that they take a risk, but they are hopeful.



Eurofound (2020), Hestia, Internal restructuring in Estonia, factsheet number 100584, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/100584.