“With the first fund, we are aiming for a volume of 500 million euros,” said TUI Strategy Director Peter Krüger of the Frankfurter Allgemeine Zeitung (FAZ). “We have already secured around half of them. Investor demand is high.”
The fund is to focus on locations for hotels of the group’s own brands such as TUI Blue and Robinson outside of Europe, for example in the Caribbean. In the future, a second fund for hotels in Europe could follow, for which one could even aim for a higher fund volume, Krüger told the newspaper.
As an investor in the first fund with a term of twelve years, issued by Hansainvest from the Signal Iduna Group, the travel group is looking at pension funds and insurers. Internationally, this is by far the largest investor market with long-term investment goals, said the strategy board of the FAZ. One of the largest German pension funds is already involved. “We offer a niche model, investing in holidays with sun and beach. Many investors are currently looking at holiday hotels. Because the city hotel industry will be hit harder and longer by the consequences of the crises,” said Krüger.
Group CEO Fritz Joussen had already spoken in December 2020 that hotels could also be financed with the help of fund structures, with the real estate business being separated. “The fund structure allows us to decouple our growth from the capital intensity of our business,” said Krüger of the FAZ. “The operation of holiday hotels is TUI’s core business, property ownership is not necessarily.”
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