Hannover, 31 January 2022

Further growth of successful hotel division

TUI initiates international hotel fund with gross target volume of 500 million euros with HANSAINVEST LUX as AIFM

  • Global fund provides opportunity to institutional investors to invest into leisure hotels with strong brands such as Robinson and TUI Blue
  • One of the largest German pension funds has made capital commitment for a significant share of the fund’s planned equity volume, TUI participates with 10% of the equity volume
  • Focus on growth outside Europe - first fund to invest predominantly into new hotels
  • Separation of returns from real estate investment, hotel operations and investment advisory services

The TUI Group intends to further expand its successful and profitable hotel division. To this end, the Group is launching a global hotel fund with a gross target volume of 500 million euros in cooperation with the Luxembourg unit of the renowned investment company HANSAINVEST as AIFM (Alternative Investment Fund Manager). The fund is primarily designated for institutional investors with a long- term investment horizon. One of Germany's largest pension funds has already made a capital commitment for a significant share of the fund’s planned equity volume. TUI itself will also hold a 10 per cent stake in the fund's equity. The focus of this first fund is on growth in the hotel segment outside Europe. In the future, further funds focusing on investments in Europe could follow.

The fund is designed for growth and plans to predominantly invest into new hotel properties which will be acquired or newly developed and which are currently not part of the TUI Group. Selectively, hotels from TUI Group's current portfolio may also be acquired by the fund. The properties will mainly be operated under TUI Group's international hotel brands (such as Robinson or TUI Blue) and managed operationally by TUI.

The fund investors will earn a return on their hotel investments. TUI will receive ongoing remuneration on the one hand for operating the hotels and on the other hand for providing investment advice to the fund. The TUI Group's asset-right strategy will thus be continued and earnings growth in the hotel business will be created independently of investments in real estate.

"Following the successful relaunch of our operating business, we are now returning to growth. We want to further expand our position as the leading international leisure hotel company. As TUI, we focus on what is crucial for our guests: strong brands, outstanding hotel quality and service. Our core competence is the development and operation of international hotel brands, not necessarily a return on property investments. With the launch of the hotel fund, real estate investments are separated from hotel brands and hotel operations. This allows us to grow in a less capital- intensive way. At the same time, we offer institutional investors such as insurance companies or pension funds an attractive investment opportunity in the asset class of leisure hotel real estate. We have proven over decades that we can successfully build up a hotel business and develop new destinations. Not only in areas already developed for tourism such as the Mediterranean region, but also in new destinations such as Cape Verde. We see ourselves as designers and operators of hotel brands as well as developers of holiday destinations. This is where our strength and expertise is, and we will be focusing on this in future," says Peter Krueger, member of the TUI AG Executive Board responsible for Group Strategy and M&A, as well as TUI's airline, cruise and hotel assets and JVs.

About TUI Group

TUI Group is one of the world's leading tourism groups and operates worldwide. The Group is headquartered in Germany. TUI shares are listed on the FTSE 250, an index of the London Stock Exchange, on the regulated market of the Hanover Stock Exchange and on the Open Market segment of the Frankfurt Stock Exchange. The TUI Group offers integrated services from a single source for its 27 million customers, 21 million of them in the European national companies.

The entire tourism value chain is covered under one roof. This includes over 400 hotels and resorts with premium brands such as RIU, TUI Blue and Robinson and 16 cruise ships, from the MS Europa and the MS Europa 2 in the luxury class and expedition ships to the Mein Schiff fleet of TUI Cruises and cruise ships at Marella Cruises in Great Britain. The Group also includes leading tour operator brands and online marketing platforms across Europe, five airlines with more than 100 modern medium and long-haul aircraft and over 1,000 travel agencies. In addition to expanding its core business with hotels, cruises via successful joint ventures and activities in holiday destinations, TUI is increasingly focusing on the expansion of digital platforms. The Group is transforming itself into a digital company.

Global responsibility for sustainable economic, ecological and social action is at the core of our corporate culture. The TUI Care Foundation, initiated by TUI, focuses on the positive effects of tourism, on education and training and on strengthening environmental and social standards with projects in 25 countries. It thus supports holiday destinations in their development.

About HANSAINVEST Hanseatische Investment-GmbH

The capital management company HANSAINVEST Hanseatische Investment-GmbH was founded in 1969 and is part of the SIGNAL IDUNA Group. As an independent service KVG for real and financial assets, the Hamburg-based company provides a wide range of services related to the administration of liquid and illiquid asset classes. The company is headquartered in Hamburg and also has a branch office in Frankfurt am Main. HANSAINVEST is also represented in Luxembourg through a subsidiary. Currently, more than 420 mutual and special funds with gross fund assets of over 55 billion euros are administered by almost 300 employees. In December 2020, HANSAINVEST received the "Best Service KVG" award from the trade magazine TiAM from Finanzenverlag.