TUI will finance hotels, cruise ships with investment funds – report


The logo of Germany-based travel company TUI is seen on a travel agency in Paris, France on June 23, 2020. REUTERS / Charles Platiau

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BERLIN, Jan. 5 (Reuters) – TUI (TUIGn.DE) plans to finance new hotels and cruise ships by setting up investment funds rather than borrowing, its strategic director said as quoted by German magazine WirtschaftsWoche.

The world’s largest vacation company had to be backed by billions of euros in government aid after its travel business collapsed during the COVID-19 pandemic.

TUI has been slow to recover and due to its existing debt, which increased during the pandemic, TUI had to look for other ways to finance new cruise ships or hotels, Peter Krueger said as quoted by WirtschaftsWoche on Wednesday. .

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“There is enough money in the market and we already have very concrete interested parties,” Krueger said, adding that the investment fund’s plans are quite advanced.

“Our integration eliminates most of the risk for investors,” said Krueger, who plans to present the details in a few weeks.

WirtschaftsWoche said TUI plans to build more than 100 new hotels and up to six new cruise ships in the coming years.

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Reporting by Miranda Murray; Editing by Alexander Smith

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