Tui sells its minority 49% stake in Spanish hotel group Riu
KINGSTON, Jamaica — German multinational tourism business group Tui has reached an agreement with Riu Hotels to sell its 49 per cent minority stake in the Spanish hotel company.
Under the €670 million (£575 million) deal Riu will take full ownership of 19 properties jointly-owned with Tui, and another two under construction.
Travel trade news reports say Peter Krueger, chief strategy and M&M officer for Tui Group’s hotel investments, has explained that the deal will separate hotel management and holiday experience from ownership.
The management of all 100 Riu hotel and resorts worldwide will continue under a 50-50 joint venture between the two firms, including the 21 properties Riu is set to take full ownership of.
Tui is reported as saying the deal will ensure it has less cash tied up in land and real estate.
The tourism group has also said proceeds from the sale will be used to reduce “corona debt”.
