Thomas Cook seeks to expand own-brand hotel options with LEMY deal

Thomas Cook Seeks To Expand Own-brand Hotel Options With LEMY Deal

Thomas Cook has entered into a strategic partnership with LMEY Investments, a Swiss-based hotel property development company, to develop along with also also grow Thomas Cook’s own-brand hotel portfolio.

Thomas Cook Seeks To Expand Own-brand Hotel Options With LEMY Deal

As part of the completely new partnership, Thomas Cook has acquired via LMEY a 42 per cent stake in Aldiana, a premium club along with also also activity-focused tour operator along with also also hotel management company based in Germany.

Thomas Cook Seeks To Expand Own-brand Hotel Options With LEMY Deal

Aldiana currently operates eight club resorts located in Spain, Greece, Cyprus, Tunisia along with also also Austria, with plans to open another four resorts over the next two years.

Thomas Cook Seeks To Expand Own-brand Hotel Options With LEMY Deal

Following the acquisition, Aldiana will sit alongside Thomas Cook’s six existing proprietary hotel brands, bolstering Thomas Cook’s own-brand hotel portfolio using a well-liked club offering along with also also broadening its reach to completely new customers.

Thomas Cook Seeks To Expand Own-brand Hotel Options With LEMY Deal

In addition, Thomas Cook along with also also LMEY have entered into an agreement to work together to create a joint hotel investment platform, in order to accelerate the growth of Thomas Cook’s own-brand hotels portfolio.

Thomas Cook Seeks To Expand Own-brand Hotel Options With LEMY Deal

The partners intend to establish the platform by contributing a minimum of a few owned along with also also directly-managed hotel properties between them.

Thomas Cook Seeks To Expand Own-brand Hotel Options With LEMY Deal

These seed assets, using a combined value of around £150 million, will be used to develop the platform into a fund focused on acquiring a pipeline of further hotel along with also also resort assets across Thomas Cook’s destination markets.

Thomas Cook chief executive, Peter Fankhauser, said: “The development of a strong portfolio of own-brand hotels will be absolutely key to our success, allowing us to provide customers using a consistent along with also also high-quality holiday, whatever their needs.

“Our completely new strategic partnership with LMEY, with its proven track record of identifying along with also also redeveloping highly successful properties in sun along with also also beach locations, gives us the perfect launch pad to accelerate This kind of critical part of our strategy.”

Trading Update

Also today, Thomas Cook said summer 2017 was closing out as expected in a trading update, with the full year underlying EBIT outlook therefore unchanged.

Fankhauser added: “Thomas Cook has enjoyed a not bad summer.

“Customers via across our markets have shown a strong appetite for our holidays, picking a wide range of destinations in their search for the sun, with Greece, Bulgaria along with also also Cyprus proving particularly well-liked.

“Demand for Turkey along with also also Egypt has also picked up as customers look for quality along with also also value.

“Meanwhile, bookings to Spain, our biggest destination overall, remain level with last year as we continue to manage through what has proven to be a very competitive trading environment, particularly for the UK.”

The group will announce its full year results to September 30th on November 22nd.

Chief Financial Officer

On a busy day for the company, Thomas Cook also revealed group chief financial officer Michael Healy has decided to retire.

The board has appointed Bill Scott, currently director of financial reporting at the company, as his successor.

Over the next three months, Healy will lead a detailed handover to Scott, who will assume the role along with also also be appointed as an executive director on the board on January 1st.

Thomas Cook seeks to expand own-brand hotel options with LEMY deal

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