TUI to add 17 hotels

TUI Boeing 737 Max 8 Aircraft
TUI Boeing 737 Max 8 Aircraft

TUI Group said that it planned to open 17 hotels this year, with a number under the company’s Riu and Robinson brands.

The expansion will take place under the group’s asset-light model, with the company targeting 100 hotels under its flagship leisure brand TUI Blue.

During the first quarter, one new TUI Blue hotel was opened and nine re-positioned. Turnover at the hotels and resorts business was up by 4.8% to €328.6m on the year in the first quarter.

Occupancy for the segment was 77 %, up one percentage point versus the prior year. Average revenue per bed increased by 4 % to €68.

TUI Group reported a 7.7% increase in turnover for the first quarter, with underlying Ebitda more than trebling at €111.5m. The group said that holiday experiences saw a weaker result for the first quarter, with improved occupancy and average revenues at hotels & resorts offset by higher cost base and foreign exchange losses from the devaluation of Turkish Lira.

Looking ahead, the group said: “FY20 in terms of booking trends has started exceptionally well, with the UK delivering its best bookings volume month in the company's history”. It added that the Boeing 737 Max grounding weighed “on our operational performance, with an extended grounding now expected for the rest of the financial year.”