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TUI Blue Jadran, Croatia

TUI narrows seasonal loss, expands hotels

As the tour operator group posts its first-half results, the TUI Blue portfolio expands to ten hotels.

Since TUI Group launched its new lifestyle hotel brand TUI Blue two years ago, the subsidiary has played “a crucial role in delivering the group’s growth roadmap in this segment”.

Now, as the tour operator delivers its latest results, it stresses that its hotel companies and cruise businesses “reflect the group’s strength”.

In the first half of its financial year, ending March 31, TUI increased its turnover by 7.2% to €6.81 billion. The seasonal underlying EBITA loss was improved by 26% to -€158.6 million including several one-off effects.

Apart from foreign exchange impact and the ‘Easter effect’ – the earlier timing of Easter in 2018 – the group incurred costs in the wake of the insolvency of the airline Niki but recorded gains on disposal from sales of RIU hotels.

The hotels and resorts segment benefited from factors such as an overall increase in occupancy for the period, to 77.1%, and rates rising to €71 on average. It also adjusted and streamlined its portfolio, gaining €38 million from the sale of three RIU hotels.

Blue and Riu
For summer 2018, the company is planning to open five new hotels including the Riu Astoria in Bulgaria, a TUI Sensatori hotel in Rhodes and the recently acquired Riu Palace Zanzibar.

The portfolio of the experience brand TUI Blue has now grown to ten hotels. The new properties included in the portfolio from May are the TUI Blue Rocador in Majorca and the TUI Blue Marmaris on the Turkish Aegean.

“With TUI Blue, we have launched a hotel brand that blends TUI’s quality and brand propositions with entirely individual and authentic holiday experiences,” said Erik Friemuth, managing director of TUI Hotels & Resorts.

The newly opened 4-star TUI Blue Rocador is located on the sandy beach of one of the coves of Cala d’Or in southeast Majorca and features 211 rooms. The 4-star, 279-room TUI Blue Marmaris also welcomed its first international guests at the beginning of May, its rooms “spread across numerous cottage-style villas in a pristine pine forest”.

Both hotels focus on adults and couples, and TUI Blue “offers a modern interpretation of typical regional cuisine, cutting-edge technology and the innovative Bluef!t concept for fitness, wellness and nutrition”.

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