Global hotel group Tui is joining forces with the Luxembourg unit of Hansainvest to launch a global hotel fund with a gross target volume of €500 mln.
The fund, which is primarily designated for institutional investors with a long- term investment horizon, has already secured a significant capital commitment from one of Germany's largest pension funds. Tui itself will also hold a 10% stake in the fund's equity.
The vehicle will focus on the hotel segment outside Europe, with the hotel group saying it could evaluate a hotel fund for Europe in the future. In the future, further funds focusing on investments in Europe could follow.
The fund plans to predominantly invest into new hotel properties which will be acquired or newly developed and which are currently not part of the Tui Group. Selectively, hotels from Tui Group's current portfolio may also be acquired by the fund.
‘Following the successful relaunch of our operating business, we are now returning to growth. We want to further expand our position as the leading international leisure hotel company. Our core competence is the development and operation of international hotel brands, not necessarily a return on property investments. With the launch of the hotel fund, real estate investments are separated from hotel brands and hotel operations. This allows us to grow in a less capital- intensive way. At the same time, we offer institutional investors such as insurance companies or pension funds an attractive investment opportunity in the asset class of leisure hotel real estate,’ said Peter Krueger, member of the Tui executive board responsible for Group Strategy and M&A.
