Hotels & Resorts Development
Hotel Fund
The fund has been set up and operates in cooperation with the Luxembourg unit of HANSAINVEST as AIFM (Alternative Investment Fund Manager). The fund is primarily designated for institutional investors with a mid to long-term investment horizon. TUI itself is a co-investor in the fund and has committed to always holding a 10 per cent stake in the fund. The target gross asset value of the initial sub-fund is 500 million euros, but additional sub-funds can be added, making this a scalable structure.
The fund leverages TUI’s proven track record in hotel management and operations and benefits from TUI’s strong distribution network. The fund currently owns 3 hotel assets in Zanzibar, Cape Verde and Jamaica and is expanding in further geographies. The hotels are managed by TUI and other leisure brands.
The global hotel fund offers institutional investors an attractive investment opportunity in the asset class of leisure hotel real estate, which has demonstrated notable resilience during the pandemic and allows them to participate in the real estate value creation. The fund targets to pay attractive annual dividends and value creation IRR.
