Austria
- CEO Fritz Joussen: “Implementation of ‘asset-right’ strategy and focus on managing brand, service and distribution - TUI sharpens its longstanding successful partnership with RIU and the Riu Family”
- TUI can receive proceeds of up to 670 million euros, first payment of 541million euros settled today
Hannover/Palma, 30 July 2021. The TUI Group has successfully completed the sale of its minority stake in a property portfolio to the Riu family. The portfolio, which was previously held jointly between TUI and RIU, consists of 21 properties, comprising 19 existing buildings and two in development. The divestment only includes the ownership of these properties. The operation and marketing of these hotels will continue to be carried out by the 50:50 joint venture between TUI and RIU. As a result, TUI ties up less capital in property ownership and concentrates on its core business, the operation and marketing of hotels.
TUI had agreed and announced the sale in May 2021. The total portfolio was valued at 1.5 billion euros. For its 49 percent minority stake, TUI has received an initial purchase price payment of 541 million euros today and can receive an additional earn-out of around 130 million euros until 2023.
The transaction has been closed in a continued difficult market environment and generated a significant book gain of around 200 million euros. As announced previously, the proceeds will be used to reduce the Group's Corona debt.
Fritz Joussen, CEO of TUI Group: “With the sale of properties TUI sharpens its long-standing successful partnership with RIU and the Riu family and creates the basis for profitability and new growth after the pandemic. The transaction also enables us to further implement our ‘asset-right’ strategy with a clear focus on managing brand, operations, customer experience and distribution – decoupling growth in hotels from investments and hotel management and the holiday experience from property ownership.“
The core of the long-standing strategic hotel partnership between RIU and TUI continues to be the 50:50 joint venture. It will continue to operate all 100 RIU hotels and resorts worldwide in 19 countries. TUI continues to strengthen its core business with holiday experiences and intends to grow its international hotel brands TUI Blue, RIU, Robinson, TUI Magic Life.
