The RIU Group simplifies its corporate structure

International

The RIU Group is in the process of merging two of its holding companies as part of its corporate reorganisation and simplification project.

As a result of this, Riu Hotels S.A. will absorb Hotel San Francisco S.A., thereby unifying hotel operations and holdings in the group's various legal entities. The merger project was presented in March and will be finalised this summer.

Following the merger, Riu Hotels S.A. will employ more than 16,900 people and own 51 hotels (21 coming from Riu Hotels and 30 from Hotel San Francisco), with a total of 26,051 rooms in 15 countries. The current companies’ combined turnover in 2024 exceeded 1.8 billion euros, a figure that is set to surpass the 2-billion mark in 2025, while the 2024 EBITDA reached 702 million euros. The new Riu Hotels S.A.’s fixed assets have a book value of 4.1 billion euros, and include the company’s 51 hotels.

This merger will change the way that the company is organised, with a more efficient asset management and a more rational distribution of activities. Furthermore, it will decrease the administrative burden and reduce managerial costs as the businesses will act as a single entity. The new Riu Hotels S.A. resulting from the merger will also have more equity, which means a higher financing capacity. The board of directors will comprise all members of the fourth generation of the Riu family.

This merger project began to take shape after TUI sold its 49% stake in Riu Hotels S.A in 2021 to the Riu family who became the sole owner of the company. As this was already the case with Hotel San Francisco S.A., following the transaction, it no longer made sense to have two separate legal entities engaged in the same activity. RIUSA II, which is jointly owned by TUI and the Riu Family, and itself owns 29 hotels, will remain the management company of the new merged entity.

For further information please visit: www.riu.com