TUI launches global hotel fund | 2/1/22

Tourism group TUI has launched a global hotel fund with a total target size of €500 million.

The fund allows investors to invest in holiday properties with brands such as Robinson and TUI Blue and is primarily aimed at institutional investors with a long-term investment horizon, the group announced. TUI’s Director of Strategy, Peter Krueger, announced the move in several press interviews. The group is launching the fund in cooperation with Hansainvest’s Luxembourg unit.

The tourism group announced on Tuesday that one of Germany’s largest pension funds has already pledged capital for a large proportion of its equity. TUI itself will own 10 percent of the equity of the fund. This fund’s first focus is on growth in the hotel sector outside Europe. Other funds geared towards investments in Europe can follow.

“Our primary competence is the development and operation of international hotel and hotel brands, not necessarily a return on real estate investments. With the launch of the Hotel Fund, real estate investments will be separated from the hotel brands and their operations. This allows us to grow in a less capital intensive manner,” according to Ma Mentioned by Krueger, “We see ourselves as designers, operators of hotel brands and developers of vacation destinations. This is where our strength and competence lies, and which we will focus more on in the future.”

Investments are mainly planned in new hotel complexes to be purchased or newly developed which are not currently part of the TUI group. In addition, individual hotel complexes can also be acquired from the existing portfolio of the group for the benefit of the fund. The return will accrue to the investors in the fund. TUI receives ongoing bonuses for operating hotel facilities on the one hand and investment advice for the fund on the other.

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