Get the app today! Download iPhone App Download Android App


TUI Agrees To Sell Its Stake In RIU Hotels To RIU Group

Published on May 31 2021 2:26 PM in Hotel tagged: Trending Posts / TUI / Riu Hotels and Resorts / RIU Hotels & Resorts / RIU Hotels / RIU Group

TUI Agrees To Sell Its Stake In RIU Hotels To RIU Group

Holiday company TUI Group has said that it has agreed to sell its 49% stake in Spain's RIU Hotels SA to co-owner RIU Group in a deal that gives the joint venture an enterprise value of €1.5 billion.

TUI said that the expected net cash consideration for the sale stands at €540 million, and added that including an earn-out-element - payable once RIU Hotels SA delivers its budgets for 2022 and 2023 - it will grow to €670 million.

The transaction, which TUI said will generate a considerable book gain, is expected to be completed in late summer 2021. Proceeds will be used to cut debt which increased significantly during the Corona pandemic.

50/50 Hotel Joint Venture

TUI said a separate and long-standing 50/50 hotel joint venture with RIU - including 100 hotels and resorts around the world - will be unaffected by the deal.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

Share on Facebook Share on Twitter Share on LinkedIn Share via Email