CaixaBank lends 825 million to RIU to finance purchases and growth plan

CaixaBank has been the firm that has exclusively financed the Mallorcan hotel company RIU, to which it has lent 825 million euros. With this money, the chain will buy back 49% of 19 hotels held by the tour operator TUI, as well as other hotel projects in Mexico and Senegal.

CaixaBank has exclusively financed the RIU Group with a total of 825 million euros for the acquisition of 49% of 19 hotels from the tour operator TUI, as well as the implementation of other international expansion projects. This was confirmed by sources at the entity chaired by José Ignacio Goirigolzarri, who emphasized the bank’s commitment to the Spanish tourism sector.

The financing granted by CaixaBank will provide RIU with sufficient liquidity to undertake various plans. On the one hand, it will use 670 million euros to acquire the remaining 49% (the group already had the other 51%) of 19 hotels operating under the RIUHotels & Resorts brand.

In addition, the Mallorcan hotel group will have another 155 million euros to undertake several projects to open new hotels in Mexico and Senegal, according to sources from the company.

Patrimonial model

With 100% control of the capital of its 19 hotels, the Riu family confirms its support for a patrimonial model of hotel management, since in its opinion the agility it provides has proven to be an advantage at a time of systemic crisis such as the one suffered as a result of the coronavirus pandemic.

The purchase of 49% of TUI, however, will not alter other parts of the strategic and commercial alliance between the two companies in other areas. The tour operator has already declared its intention to maintain its 50% stake in Riusa II, the company that manages RIU-branded hotels.

At the beginning of the year, the Mallorcan group put up for sale three hotels totaling more than 1,500 rooms due to the fall in tourist activity as a result of the restrictions on mobility imposed by the authorities to combat the pandemic.

With the proceeds from these assets, located in Madeira (Portugal) and Lanzarote, the company sought to hoard liquidity at a time of great uncertainty in the hotel sector.

Source: Expansión.