Tui Group has acquired an all-inclusive resort in Zanzibar as part of a strategy to expand its in-house portfolio of hotels.
The purchase price for the Emerald Zanzibar Resort & Spa in Tanzania was not disclosed.
The deal was secured via a new global hotel fund which has been raising capital since being initiated last year in conjunction with a Luxembourg-based investment firm.
The resort will be operated by Tui Hotels & Resorts from early 2024, with all bookings already made to be taken over.
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The addition gives the group four hotels on the East African island.
The fund also intends to acquire an unnamed hotel from Tui’s portfolio for an undisclosed sum with the proceeds from the sale to be invested in further hotel growth.
The group’s hotel portfolio was expanded by 32 properties, some being operated under the Tui Blue brand, in the current financial year.
Tui group strategy and mergers and acquisitions executive board member Peter Krueger said: “Profitable growth is the focus of our strategy for the future.
“Our own hotel and club brands make a significant contribution to growth and the company earnings and offer our guests exclusive products.
“We initiated the hotel fund with the aim of further expanding our successful hotel portfolio and increasing the earnings of the segment, while at the same time being able to offer professional investors an attractive hotel property investment.
“We have succeeded in doing this well, the fund is equipped with initial funds and is operational.
“Now we are moving into the first investment phase. The fund has the means to purchase further hotels. The next concrete investment opportunities are already being pursued.”
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