In a deal with the TUI group, the Riu family has taken complete ownership of the Riu Hotels & Resorts brand. TUI group had held 49 percent of the company, but has recently sold its share for €670 million in order to reduce its debts built up during the Covid-19 pandemic.
Riu Hotels & Resorts brand was founded in Mallorca in 1953 as a small holiday firm and continues to be owned by the family. The hotel brand has a collection of 19 hotels, with two properties in development. Riu and TUI continue to have a 50:50 joint venture with 100 hotels and resorts globally. The joint venture will continue to manage and distribute all Riu hotels – including the 21 properties that will be fully owned by the Riu family.
TUI said the deal means it is “strengthening its core business with holiday experiences”.
“The group intends to grow primarily with its international hotel brands Tui Blue, Riu, Robinson, Tui Magic Life and the management of these hotels, but in doing so will tie up less capital in land and its own real estate in the future,” TUI added in a statement.
Earlier this week, the TUI Group had cancelled trips to a number of red and amber list destinations out of the UK until late next month. The holiday giant has cancelled all departures to Mexico, Dominican Republic, Costa Rica, Turkey, Egypt, Cape Verde, Morocco, Tunisia and Bulgaria until June 27th.
TUI explained in a statement: “We want to offer our customers flexibility and choice this summer, so where borders are open and Foreign, Commonwealth & Development Office advice allows travel, we will operate to those destinations as planned.
“We are constantly reviewing our holiday programme and cancellations in line with the government updates every three weeks, with the next update due in early June.”
The holiday group said all customers impacted by these cancellations will be contacted directly and can request a full refund, or change to a later date or alternative holiday and receive a booking incentive.
“We would like to thank our customers for their understanding at this time,” the statement concluded.
TUI has cancelled many trips because of “ongoing uncertainty” around travel restrictions. Their holiday packages to Aruba, Croatia, Cyprus, Italy, Jamaica and Tanzania have but cancelled until June 13th.
Other trips that have been suspended include holidays to Crete, Halkidiki, Kefalonia, Preveza, Samos, Santorini, Skiathos, Thassos and Zante, as well as Spanish destinations including Formentera, Mallorca, Ibiza, Menorca and La Palma. Additionally, Tui Lakes & Mountains holidays have also been cancelled up to and including the same date.