TUI's newly launched hotel fund becomes operational for the first time, with the acquisition of the recently opened Emerald Zanzibar Resort & Spa in Zanzibar. The hotel will be operated by TUI Hotels & Resorts, expanding TUI's offering on the East African island to four hotels. The fund has additional capital for acquisitions and is exploring potential hotel projects.
In light of a return to normal operations, TUI is increasingly focusing on profitable growth again. This will be achieved in particular by expanding its own product portfolio. TUI's hotel brands are among the most important drivers of growth and contribute significantly to the TUI Group's revenue. Hotels & Resorts has generated consistently positive results for several quarters, and its underlying EBIT has even exceeded pre-pandemic levels in the last four quarters. The Group therefore intends to further expand the hotel portfolio. The asset-based strategy that was initiated already at the end of 2019 through management and franchise agreements as well as successful joint ventures and investment partnerships will serve this purpose.
During the current financial year, the hotel portfolio has been expanded by 32 properties, some of which are operated under the TUI Blue brand. To further accelerate the less capital-intensive expansion, the global hotel fund was also initiated last year and is now entering its first investment phase after a successful initial capital raising phase. The fund, which was launched together with HANSAINVEST in Luxembourg, has acquired the 5-star Emerald Zanzibar Resort & Spa on Zanzibar in Tanzania. The parties have agreed not to disclose the purchase price.
– Profitable growth is the focus of our future strategy. Our own hotel and club brands contribute significantly to the growth and the company's revenues and offer our guests exclusive products. We initiated the hotel fund with the aim of further expanding our successful hotel portfolio and increasing revenues in the segment, while at the same time being able to offer professional investors an attractive investment in hotel properties. We have succeeded in this well – the fund is equipped with initial funds and is operational. We are now entering the first investment phase. The fund has funds to acquire additional hotels. The next concrete investment opportunities are already being followed up, says Peter Krueger, board member of TUI AG with responsibility for group strategy and M&A, as well as the growth segment Holiday Experiences, which includes hotels, hotel brands and co-ownership.
After a transition period, the new all-inclusive hotel will be operated by TUI Hotels & Resorts from the beginning of 2024. All existing guest bookings will be taken over. TUI thus expands its offering on the East African island to four hotels. In addition to TUI Blue Bahari Zanzibar, the group also operates RIU Palace Zanzibar and RIU Jambo together with RIU.
The fund also intends to acquire a hotel property from TUI's portfolio. This is currently operated by a TUI hotel brand and will continue to be operated as such through a management agreement. Here too, the parties have agreed not to disclose the purchase price. TUI will invest the proceeds from the sale in further hotel growth.
According to the press release.
