41 new hotels added to the growth pipeline in financial year 2023
TUI Group sees further potential in the leisure hotel industry and plans to expand its portfolio for its customers from 424 hotels to 600 hotels in the midterm. TUI Hotels & Resorts is one of the growth drivers of the international tourism group based in Hanover. Since mid-2022, the segment has consistently generated positive results above the respective pre-pandemic levels.
In financial year 2023, 41 new hotels have been added to the growth pipeline driven by a combination of investment partnerships, management and franchise agreements. TUI will focus on a portfolio of 12 hotel brands powered by a global distribution platform to support its expansion targets. TUI’s portfolio includes global hotel brands such as RIU, Robinson, TUI Blue and TUI Magic Life as well as regional brands such as Atlantica, Grupotel, Iberotel and Akra. The global hotel fund plays a key role in the development of new hotel projects. It offers institutional investors an investment in hotel properties that are operated with the expertise of TUI and its internationally renowned brands.
With the repositioning of a 5-star resort in Zanzibar recently acquired by the global hotel fund, TUI will add a new upper market hotel brand to its portfolio. The hotel will be operated as The Mora Zanzibar from spring 2024 onwards. The new brand name is derived from the Latin word for “pause” and will offer laid-back, contemporary luxury with highly tailored and flexible service. It is positioned to target a growing customer segment with high income that invests in experiences rather than goods.
Peter Krueger, member of the TUI AG Executive Board responsible for Group Strategy and M&A, as well as the growth segment Holiday Experiences, which includes the hotel business: “TUI Hotels & Resorts is highly profitable and has developed into a global business in recent years. Our asset-right strategy is starting to scale. We are also continuing to focus on hotel ownership through partnerships. At the same time, our strong portfolio – with hotel brands for price-conscious customers through to luxury guests – is driving growth through management and franchise agreements.”
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