TUI AG After this transaction, that also includes two hotels in development in Mexico and Senegal, RIU Group will hold 100% of the ownership of the properties
RIU Group will acquire from TUI its 49% stake in 19 hotel properties which are operated under the RIU Hotels & Resorts brand and are located in four different continents, as well as two more hotels that are now under development. The Riu family already holds 51% stake of these properties and will now become its sole owner. The transaction has been approved today by TUI's Supervisory Board and is valued at 670 million euros.
Loyalty was paramount in the negotiations for this transaction, given that both companies have a firm desire to maintain and strengthen their strategic and commercial relationship over the long term. In fact, TUI is maintaining its 50% stake in RIUSA II S.A., the company that manages the RIU brand hotels and which the two companies founded in 1993.
This operation comes in the context of the crisis caused by the COVID-19 pandemic, which has profoundly affected the tourism industry. For its part, with this extraordinary indebtedness effort, RIU continues supporting its strategic partner over the long term. Furthermore, after confirmation that the ownership model has turned out to be an advantage in facing this crisis, taking 100% control of the ownership of these hotels provides additional agility in confronting possible paradigm changes in the near future.
RIU maintains its position of strength, its management will continue, as always, to be characterized by prudence and stability, and it will continue working on reactivation, with the intention of preserving all of its jobs.
The international RIU chain was founded in Mallorca by the Riu family in 1953 as a small holiday firm and is still owned by the family's third generation. The company specialises in holiday resorts and over 70% of its establishments offer its acclaimed All Inclusive by RIU service. With the inauguration of its first city hotel in 2010, RIU is expanding its range of products with its own line of city hotels called Riu Plaza. RIU Hotels & Resorts now has 93 hotels in 19 countries which welcome over 4,5 million guests a year and provide jobs for a total of 29,985 employees. RIU is currently the world's 35th ranked chain, one of the Caribbean's most popular, the 4th largest in Spain in terms of revenue and the fourth largest in number of rooms.
Riu
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TUI AG published this content on 27 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2021 10:12:02 UTC.
