Kempinski Hotels has revealed that the embezzlement that is alleged to have been carried out by its former president and chief executive amounts to more than six million Swiss Francs (approximately £3.95m).
Last week the luxury hotel company, which has corporate offices in Geneva and Munich, announced allegations of fraud and professional misconduct had been filled against Reto Wittwer in Switzerland, following the results of an internal investigation.
Wittwer is alleged to have channelled funds out of the company "with fraudulent intent and avoiding all internal controls", including during periods when Kempinski was attempting to make budget cuts and drastic savings on labour costs.
The company said: "Kempinski has entire confidence in the Swiss criminal authorities with whom the complaint has been filled, and will fully support the authorities as the criminal complaint follows its due course."
In an interview with German magazine, Hospitality Inside, Wittwer has denied all allegations against him and stated that he is taking legal advice.
Kempinski currently operates 78 hotels in 33 countries. During the last 12 months, Kempinski has opened seven hotels in Myanmar, China, Qatar, Germany, Egypt and Ghana, with a further five expected to open during 2016.