The €670 million (£575 million) deal will see Riu take full ownership of 19 properties jointly-owned with Tui, and a further two under development.
Peter Krueger, chief strategy and M&M officer for Tui Group’s hotel investments, said the deal would separate hotel management and holiday experience from ownership.
The management of all 100 Riu hotel and resorts worldwide will continue under a 50-50 joint venture between the two firms, including the 21 properties Riu is set to take full ownership of.
Tui said the move would ensure it has less cash tied up in land and real estate. Proceeds from the sale "will be used to reduce the group’s corona debt" said Tui.
It comes as part of Tui’s "asset right" strategy, which dates to December 2019 with the inclusion of Hapag-Lloyd Cruises in Tui’s joint venture with Tui Cruises.
"The group intends to grow primarily with its international hotel brands Tui Blue, Riu, Robinson, Tui Magic Life and the management of these hotels, but in doing so will tie up less capital in land and its own real estate in the future," said Tui.
"With the acquisition of our share in the 21 real estate properties by the Riu family, we will release capital employed, while we are strengthening our core business by focusing on global hotel management with continuing our successful Riu operating joint venture," added Krueger.
"For the customer experience, it’s all about the brand and quality of the hotel rather than ownership of the real estate. The partnership between Tui and the Riu family has existed for many decades and will be further strengthened by this transaction. Tui and Riu look forward to welcome guests again this summer in many countries open for travel and expect strong business recovery next year."
