GroupRecord sales - 6 times the profit of hotel holding RIU and TUI Group

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The Riusa company, which owns 31 hotels and manages 64 by the end of 2022, has posted a profit of 196 million euros and revenue of 1.045 billion euros, and is preparing to enter the Thailand market.

Hotels controlled by Spanish company RIU and German tour operator TUI are growing their business thanks to a recovery in tourism and achieving record revenues while entering new projects such as in Thailand.

Riusa more than six times its net profit last year, earning 196 million euros, up from 30 million the previous year, and nearly reaching the 213 million euros the company earned in 2019, before the pandemic outbreak.

The company also doubled its revenue to reach the €1.045 billion mark, up 109% from the €500 million recorded a year earlier, and exceeding the €891 million in 2019 and €893 million in 201The most profitable country was Spain with a profit of 80.2 million euros, followed by Mexico (61.5 million), Cape Verde (38.1 million), Jamaica (37.2 million), Zanzibar (12.7 million), the Netherlands (1.2 million) and Morocco (116.174 euros). On the other hand, losses were incurred by Mauritius (-32.7 million), Sri Lanka (-1.3 million), Ireland (-586.835 euros), Bulgaria (-412.004 euros), Luxembourg (-37.935 euros) and Tunisia (-976 euros).

Riusa had positive working capital of 42.5 million euros at the end of last year and credit lines totaling almost 99 million euros, of which 4.4 million euros had been drawn down as of December 31, 2022. Riusa has eleven hotels in Spain, four hotels in Jamaica, six in Mexico, six in Cape Verde, two in Mauritius and two in Tanzania. Through other associates, the company also has four hotels in Morocco and one in Sri Lanka.

In addition to Riusa, the Riu family owns twenty other hotels through Riu Hotels, which they acquired 100% from TUI for 670 million euros in 2021. Overall, the RIU Group closed last year with revenues of 2.905 billion euros and a staff of 34,215 professionals. In addition, the Riu family has been a shareholder in TUI since 2005 and currently holds a 1.1% stake in the German group following the company's latest capital increase.

Carmen and Luis Riu, who have jointly managed the group since 1998, explain that in 2022 the group is "finally able to forget" the Covid crisis and operate as normal in almost all destinations, but point out the difficulty of transferring all the cost increases to price, so most will be reflected in margins. "To keep RIU healthy, we need to keep all the machinery running and all employees motivated.

This includes the continued renovation of facilities and the opening of new hotels. Always with a focus on improvement and innovation. Therefore, despite the challenges, we will also realize great projects in 2023," the executives add.

The hotel company is looking to expand its presence in Asia, one of the markets in which the group has been present since 2016. The hotel company, 50% controlled by RIU and TUI, explains in its filings that it bought 100% of Khao Golden Land for 15.8 million dollars (approximately 15 million euros at current exchange rates). This company owns a plot of land in Thailand on which the company plans to build a new hotel. This operation will be the company's initial entry into the Southeast Asian market, where the Spanish company Meliá is already present.

With most of its properties through Riusa or Riu Hotels, the Mallorca-based group already has 97 operating hotels with 49,879 rooms in twenty countries and plans to open new hotels in Toronto, Jamaica and Chicago in 2024. In addition, the group recently acquired land on Broadway to build its third hotel in New York City, following Riu Plaza Manhattan Times Square and Riu Plaza New York Times Square.