Tuesday, August 8, 2023
Against the background of a return to normal operational business, TUI is once again focusing more on profitable growth.
This is to be generated in particular by expanding the company’s own product portfolio.
The TUI hotel brands are among the key growth drivers and make a significant contribution to the TUI Group’s earnings.
The Hotels & Resorts division has been consistently generating positive results for several quarters, and the adjusted EBIT for the last four quarters is even above the pre-crisis level. The group intends to use this momentum to further expand the hotel portfolio. The asset-right strategy introduced at the end of 2019 via management and franchise agreements as well as successful joint ventures and investment partnerships serves to achieve this.
In the current financial year, the hotel portfolio was expanded by 32 hotels, some of which are operated under the TUI Blue brand. In order to further accelerate the less capital-intensive expansion, the global hotel fund was also initiated last year, which after an initial successful phase of raising capital is now entering the first investment phase. The fund, launched jointly with Luxembourg’s HANSAINVEST, has acquired the 5-star “Emerald Zanzibar Resort & Spa” on Zanzibar in Tanzania. It was agreed not to disclose the purchase price. Peter Krueger, on the Executive Board of TUI AG responsible for Group strategy and M&A, as well as the Holiday Experiences growth segment, which includes the hotels and the hotel brands and holdings: “Profitable growth is the focus of our future strategy. Our own hotel and club brands make a decisive contribution to growth and company results and offer our guests exclusive products. We initiated the hotel fund with the aim of further expanding our successful hotel portfolio and increasing the result of the division while at the same time being able to offer professional investors an attractive hotel property investment . We succeeded well, the fund is equipped with initial resources and operational. Now we are moving to the first investment phase. The fund has the means to buy more hotels. The next concrete n investment opportunities are already being pursued.”
The all-inclusive resort will be continued by TUI Hotels & Resorts after a transition period from the beginning of 2024, all bookings already made by guests will be taken over. TUI is thus expanding its offer on the East African island to four hotels. In addition to the TUI Blue Bahari Zanzibar, the Group also operates the RIU Palace Zanzibar and the RIU Jambo together with RIU.
The fund also intends to acquire a hotel property from TUI’s portfolio. This is currently operated as a TUI hotel brand and will be continued as such in the future by means of a management contract. Here, too, it was agreed not to disclose the purchase price, and TUI will invest the proceeds from the sale in further hotel growth.
Global Hotel Fund
For decades, TUI has been successfully designing and operating leading, high-quality holiday hotel brands such as RIU, Robinson and TUI Blue, and developing holiday destinations. This position is also to be further expanded via the global hotel fund set up with HANSAINVEST, which is primarily aimed at institutional investors with a long-term investment horizon.
The fund is designed for growth and primarily plans investments in new hotel complexes that are being acquired or newly developed and that are not currently part of the TUI Group. The properties are to be operated primarily under the international hotel brands of the TUI Group (such as Robinson or TUI Blue) and operationally managed by TUI. The return from investing in hotel facilities goes to the fund investors. TUI receives ongoing remuneration for the operation of the hotel facilities and for the fund’s investment advice.
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