Tui is taking further measures: In order to cope with the debts of the Corona crisis, the group is now selling hotel shares – and is hoping for a high amount in the millions.
The state-supported Tui AG is selling its shares in a company belonging to the Spanish hotel group Riu in order to reduce the mountain of debt accumulated in the Corona crisis.
This should go hand in hand with an outsourcing of numerous properties from the Tui balance sheet and thus also a “strengthening of the core business” with vacation offers.
As the world’s largest travel group announced on Thursday evening, it is giving its 49 percent of the previous joint venture Riu Hotels SA to another company in the Riu Group for 670 million euros.
Tui wants to run hotels, but not own them
This includes 19 existing hotels and 2 other hotels that are still being built. The buying company is also controlled by the Riu family, which in turn holds 3.6 percent of Tui.
If the authorities agree and the financing goes as planned, the Hanoverians expect the deal to be concluded in the late summer.
It should then bring a “substantial book profit for the Tui”. At least 540 million euros should flow into the group net. The background is that Tui wants to concentrate more on the operation of the hotels and brand management – this also applies to the proportionate co-management of the 100 Riu hotels.
Sale aims to reduce debt from the pandemic
The real estate itself, however, should no longer be on the balance sheet. The aim is to tie up less capital in land and hotel facilities. In principle, Tui had already developed this strategy in December 2019.
The sales proceeds will now “be used to reduce the Group’s debt, which has risen sharply due to the corona pandemic,” the company said.