The RIU Group simplifies its structure by merging two of its main companies
Riu Hotels SA merges with Hotel San Francisco SA, thus unifying the operation and ownership of 51 hotels totaling 26,000 rooms
The RIU Group is working on the merger of two of its parent companies as part of its corporate reorganization and simplification project. As a result of this transaction, Riu Hotels SA will absorb Hotel San Francisco SA, facilitating the unification of hotel operations and stakes in various group entities. The merger plan was presented in March and its consolidation will take place this summer.
The Riu Hotels SA company resulting from the merger will own 51 hotels (21 contributed by Riu Hotels and 30 contributed by Hotel San Francisco) with a total of 26,051 rooms in 15 countries. The new company will have more than 16,900 employees, and both companies combined for 2024 a turnover of more than €1.8 billion, an EBITDA of €702 million, and forecast revenues for 2025 of more than €2 billion. The new Riu Hotels SA has fixed assets at book value of €4.139 billion, which includes the 51 hotels at net book value.
This merger will allow for a new organization, with more efficient asset management and a more rational distribution of assets and business activities. Furthermore, it will facilitate administrative tasks and reduce management costs by aligning the businesses into a single company. The new Riu Hotels SA resulting from the merger will also have more equity and therefore greater financing capacity. The board of directors will be composed of all members of the fourth generation of the Riu family.
The previous structure was the result of TUI Group's 49% stake in Riu Hotels SA. When the German group sold its stake to RIU in 2021, Riu Hotels became 100% owned by the Riu family, as was Hotel San Francisco SA. For this reason, it no longer made sense to maintain two independent companies dedicated to the same activity, and the project now being presented began to be designed. The manager of the hotels in the new company will continue to be RIUSA II, a 50:50 partnership between the Riu family and TUI, which in turn owns 29 hotels.
Fuente: RIU Hotels & Resorts.