Tui sells minority stake in Riu hotel properties for EUR670 million

(Alliance News) - Tui AG on Friday said it has sold its minority stake in a property portfolio ...

Alliance News 30 July, 2021 | 2:17PM
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(Alliance News) - Tui AG on Friday said it has sold its minority stake in a property portfolio worth EUR670 million to the Riu family.

For its 49% minority stake, Tui has received an initial payment of EUR541 million on Friday and can receive an additional earn-out of up to EUR130 million until 2023.

Shares in the Hanover, Germany-based holiday operator were down 4.1% to 337.70 pence each in London on Friday afternoon.

The portfolio, which was previously held jointly between Tui and RIU, consists of 21 hotel 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.

"The transaction has been closed in a continued difficult market environment and generated a significant book gain of around EUR200 million," the firm said.

"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," said Chief Executive Fritz Joussen.

By Amrit Sahota; newsroom@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
TUI AG 327.90 GBX 1.83 -
TUI AG 3.86 EUR 0.47 -

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