TUI Group announced on Friday the sale of 19 hotels in operation and two in development to Riu Hotels & Resorts for more than 670 million euros, giving it a gain of about 200 million euros.
TUI's sale only involves ownership of these assets, as the operation and marketing of the hotels will continue to be handled by the 50/50 joint venture between TUI and Riu Hotels & Resorts, the family-owned Mallorca group.
The sale of its stake to its partner had been agreed and announced in May 2021. In total, the portfolio of 21 assets was valued at 1.5 billion euros. For its 49% minority stake, TUI received an initial payment of €541 million and could receive an additional gain of around €130 million until 2023.
With the sale of the properties, TUI strengthens its successful and long-standing partnership with Riu and the Riu family and lays the foundation for the group's post-pandemic profitability and growth.
Fritz Joussen, CEO of TUI Group
The transaction also allows us to further implement our asset-right strategy with a clear focus on brand management, operations, customer experience and distribution, separating hotel management from ownership.
Through its alliance with Riu, the TUI Group is involved in the management and marketing of 100 hotels and resorts in 19 countries.
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