Tui sells minority take in Riu Hotels for €540m
Holiday giant Tui said this evening that it had agreed to sell its 49 per cent stake in Spain’s Riu Hotels SA to co-owner Riu-Group for €540m (£463.8m).
The deal gives the joint venture, which comprises of 21 properties, an enterprise value of €1.5bn.
The Anglo-German firm said that its separate 50/50 hotel management joint venture with RIU – including 100 hotels and resorts around the world – would be unaffected.
The transaction, which Tui said will generate a considerable book gain, is expected to be completed in late summer 2021.
Proceeds will be used to cut the firm’s debt, which ballooned during the coronavirus pandemic.
Peter Krueger, Tui’s chief strategy officer, said: “We are separating hotel management and the holiday experience from property ownership, in line with our strategy announced in 2019 pre-crisis, a business model that has proven successful in the international city hotel sector.
“With the acquisition of our share in the 21 real estate properties by the Riu family, we will release capital employed, while we are strengthening our core business by focusing on global hotel management with continuing our successful RIU operating joint venture.”
Tui said that it was focusing on “strengthening its core business with holiday experiences – and in particular the development, operation and marketing of hotel and holiday brands”.