TUI to finance hotels and cruise ships with investment funds – report

BERLIN, January 5 (Reuters)TUI TUIGN.DE plans to finance new hotels and cruise ships by creating investment funds rather than borrowing, said its chief strategy officer, as quoted by German magazine WirtschaftsWoche.

The world’s biggest holiday company had to be buoyed 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 has increased during the pandemic, TUI has had to look for other ways to finance new cruise ships or hotels, Peter Krueger said on Wednesday, quoted by WirtschaftsWoche .

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

“Our integration removes most of the risk for investors,” said Krueger, who plans to present details within weeks.

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

(Reporting by Miranda Murray; Editing by Alexander Smith)

((Miranda.Murray@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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