Germany's TUI, the largest tour operator in Europe, is planning to add 20,000 rooms to its portfolio over the next two years which it hopes will deliver a Eu60m uplift in EBITDA from this division.
The planned 26 new hotels will be a combination of owned, managed and franchised properties as it seeks to take its portfolio from 164,000 rooms to 184,000.
Figures for TUI's third quarter showed that the properties within its hotels and resorts division maintained or improved revpar year-on-year but only thanks to, at least at some destinations, reductions in capacity.
The brands in the portfolio include RIU, Robinson, Grecotel, Grupotel, Dorfhotel, Iberotel and Magic Life. The book value of TUI's hotel assets is Eu900m.
The largest brand within TUI is the JV with Spanish hotelier RIU. This comprises almost 75,000 rooms. RIU announced this week its biggest single construction project in its history, a 902 room resort costing $135m to build in Cabo San Lucas, Mexico.