The TUI Group has kickstarted investment via its hotel fund, launched last year with Luxembourg-based Hansainvest, to acquire the 5-star “Emerald Zanzibar Resort & Spa” on Zanzibar in Tanzania.
TUI will take over the running of the hotel and all existing bookings at the beginning of 2024, bringing its branded hospitality offering in the East African country to four hotels.
The acquisition was the first investment made by the fund, according to Peter Krueger, group head for strategy and merger & acquisitions, who stated that TUI is set to add more hotels.
“The next concrete investment opportunities are already being pursued,” Krueger said, “The fund also intends to acquire a hotel property from TUI’s portfolio. This is currently operated by a TUI hotel brand and will continue to be run as such in the future by means of a management contract.”
TUI sees its hotel division as a key growth driver, having seen positive results over several quarters, with underlying earnings before interest and taxes for the last four quarters exceeding pre-Covid 2019 performance.
The company is set to release its third-quarter results on Wednesday, 9 August.