S P Lohia Family Acquires Toscana Resort Castelfalfi
Main Photo: The Toscana Resort Castelfalfi
Date: June 2021
Location: Castelfalfi, Montaione, Tuscany, one hour drive west of Florence, Italy
Name: The Toscana Resort Castelfalfi
No. of Keys: 151
Seller: Tui Group, the world’s leading tourism group and operates worldwide. The Group is headquartered in Germany, and is listed on the FTSE 250, the London Stock Exchange, and on the Regulated Unofficial Market in Germany.
The TUI Group offers integrated services for it’s 28 million customers. They have over 400 hotels and resorts with premium brands such as RIU, TUI Blue and Robinson and 15 cruise ships, The Group also includes Europe’s leading tour operator brands and online marketing platforms, five airlines with more than 100 modern medium and long-haul aircraft and over 1,000 travel agencies. Tui acquired the hotel in 2007 and managed it under the Tui Blue brand.
Buyer: S P Lohia Family acquired the Toscana Resort Castelfalfi in May 2021, via their Incorp Holdings BV in the Netherlands vehicle, as Tui considered the hotel not to be core to their business.
The new owner plans sustainable increase in value proposition of the estate which comprises 1,100-hectare of land, mainly comprising luxury holiday properties for international owners, a hotel, restaurants, an agricultural business, a village centre with business premises, a spa with swimming pool and a 27-hole golf course.
With the sale, TUI Group continues to focus on its core business and digital transformation. TUI wants to grow primarily with its international hotel brands TUI Blue, Riu (although they have sold their 49% stake back to the Riu family), Robinson and TUI Magic Life as well as the management of these hotels and invest less in land and own properties.
The Group announced this so-called “asset right” strategy before Covid-19 in December 2019. The growth of the group and it’s hotels is to be decoupled from investments. This will lead to a streamlining of the owned portfolio.
TUI will continue to operate the resort’s own hotel until 30 September 2021. Services for property owners will also be continued to the same extent and quality. The parties have agreed not to disclose the purchase price.
Thomas Pietzka, Managing Director TUI Hotels & Resorts says: “Since our entry in 2007, Castelfalfi has developed into a luxury tourism resort. Despite its success, long-term project development in real estate and agriculture is not part of TUI Group’s core business. We delighted to have found a buyer in the S P Lohia Family’s Incorp Holdings, a long term investor who is committed to further enhancing the resort’s value.”
Mr. S P Lohia says: “We are thrilled with the acquisition of the beautiful historic village and resort of Castelfalfi and we look forward to engaging with all the stakeholders to create a world-class experience on this unique and exceptional estate. Our vision will build on the TUI legacy to create the luxury destination of choice in Tuscany.”
Mr Lohia is the founder of Indorama Corporation, Singapore, one of Asia’s leading industrial conglomerate with interests in fertilizers, petrochemicals, textiles, and medical gloves. He has been a driving force behind the Group’s growth for the last 45 years, engaging with the communities he operates in and actively participating in their development. Their manufacturing activities are spread over 30 countries and have annual sales value of US$15 billion. Mr. S P Lohia is also a passionate collector of rare books and hand-coloured lithographs. His charitable activities span the fields of education, healthcare, and the arts.
THPT Comment: One man’s non-core business is another’s good fortune…these luxury estates in Tuscany are probably better managed by a family such as S P Lohia, and the likes of HPL, Belmond, Four Seasons, Baglioni who have all been buyers in recent years.
First Seen: Tui press release
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