Oman invests in hotel construction with Tui, securing a shareholder position
In a significant move for the global tourism industry, TUI, the renowned tourism group based in Hannover, Germany, has announced a joint venture with Omran, a leading Omani company specialising in tourism and hospitality.
The joint venture, which sees Omran acquiring shares in TUI, aims to address the high demand for tourism in Oman, a region with a limited supply of tourist facilities. The acquisition will result in Omran holding shares in several popular TUI brands, including Robinson, Riu, TUI Blue, Jaz, and The Mora, all of which are planned for hotel developments.
The details of the acquisition are yet to be fully disclosed, but it is clear that the purchase involves the buying of TUI shares. The structure of the joint venture includes Omran and TUI each holding 45% of the shares, with the remaining 10% held by an unnamed private investor.
This private investor will also receive 10% of the shares in the joint venture, although their identity remains undisclosed in all available reports. After the acquisition, Omran will hold 1.4% of the shares in the TUI tourism group, a minority stake that does not give them a majority control over the company.
In terms of operations, TUI will manage the booking processes for the joint venture, including flights, transfers, hotels, cruises, and on-site excursions. This partnership is expected to boost tourism in Oman and provide TUI with new opportunities for growth and expansion.
This strategic move by TUI and Omran underscores the growing importance of the Middle East as a tourist destination and the potential for collaboration between international tourism companies and local entities to drive growth in the sector. The price per TUI share currently stands at 9.50 euros.
