Riu cuts its stake in Tui to 2.4% after buying hotels

The recovery in activity after Covid allowed the RIU hotel chain to return to profit in 2021, with global profits of 58 million euros compared to the historical consolidated losses of 149 million recorded in the previous year and derived from the impact of the pandemic on tourist activity. The Mallorca island group raised its income last year by 54%, to 267 million, Expansión publishes.

Without taking into account the impact of the conversion due to exchange rates and the variance in the annual accounting impact of investing in shares held by RIU hotels in the TUI Group, the Majorcan chain’s net profit in 2021 was 38 million euros, compared to losses of 1.6 million a year earlier. This improvement in outcome is due to the partial recovery of activity after the pandemic.

In July 2021, the company purchased the 49% stake it does not control in RIU hotels from TUI for a total purchase price of €647 million, including transaction costs. However, RIU Hotels are currently under the control of Saranja, which belongs to the Riu family, which owns 80% of the shares. The rest of the shares (20%) are owned by RIU Hotels as treasury shares (Riu invests in Tui to maintain his percentage to see his future)

In parallel, RIU Hotels has been a shareholder of the TUI Group since 2005, with a net book investment of €105 million at the end of 2021. Currently, RIU owns 2.4% of the shares of its German partner, compared to 3.6% of the capital it controlled. At the end of 2020. RIU reduced its weight in Grupo TUI by not attending the capital increase implemented by the German company in October 2021.