Update: German authorities have closed their investigation, citing no evidence of any wrongdoing. In a press statement, Kempinski called the allegations brought against senior Kempinski representatives "baseless."
German prosecutors have launched an investigation into the business dealings of luxury hospitality group Kempinski.
Spokeswoman Anne Leiding confirmed that the Munich State Prosecutor's Office has initiated a criminal examination into several individuals connected to the Kempinski organization, citing breach of trust charges.
She declined to specify who at Kempinski is currently under scrutiny, adding that due to the ongoing nature of the investigation, no further information would be available for the time being.
Kempinski did not immediately respond to a request for comment.
The news of the investigation follows Kempinski's announcement earlier this month that the company had launched its own internal, in-depth review of all projects initiated by former Kempinski CEO Martin Smura, who was abruptly terminated last December.
As a result of the review, Kempinski said it had decided to end a planned partnership with Duesseldorf-based investment and development firm 12.18. Group. In late 2019, the two had detailed plans to collaborate on the expansion of a luxury lifestyle concept, 7Pines Kempinski.
Since Smura's departure, Bernold Schroeder, who was previously Kempinski's COO for Europe, has served as the company's interim CEO.
Kempinski, which claims to be Europe's oldest luxury hotel group, has a portfolio spanning 76 hotels and residences across 34 countries.