Tui Group taps investors for hotel expansion

The Financial Times said the Tui Global Hospitality Fund would allow the company to tap into a $80 trillion pool of cash held by pension funds and similar financial institutions. 

Half the money Tui is seeking has already been pledged by a German pension fund.

“This helps us to return to growth,” Peter Krueger, Tui’s chief strategy officer told the newspaper.

Hotel investments will initially be outside Europe. Investors buy into the fund with a minimum €10 million investment and Tui will receive management fees for running the properties. The arrangement is common in the hotel industry.

The FT said a second “considerably larger fund” was planned to fund European properties.