TUI AG is pleased to announce that it has reached an agreement today to sell Hotelbeds to GNVA Acquisitions Limited, a company which is ultimately owned by funds managed or advised by Cinven and Canada Pension Plan Investment Board for a total cash consideration of €1,191 million (the “Transaction”). The Transaction is still subject to customary closing conditions and certain regulatory approvals and is expected to complete by the end of September 2016.

Hotelbeds was previously part of the Group’s Specialist Travel division and comprises B2B hotel portals selling globally sourced accommodation online to wholesale customers such as travel agencies and tour operators. Hotelbeds is the global number 1 in the B2B accommodation wholesale space with operations in more than 120 source markets. Due to their different business models and strategies, Hotelbeds had been operated independently from the Group’s Tourism business in order to maximise the division’s growth and value.

Proceeds will be used to invest in future growth opportunities and strengthen TUI’s balance sheet. It is anticipated that an update will be given at TUI’s forthcoming H1 2015/16 results presentation.