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TUI looking at new equity, divestments to cut COVID-19 debt pile

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LONDON (Reuters) – TUI (TUIT.L) (TUIGn.DE), the world’s largest tourism company, said it was considering raising new equity from shareholders or selling off parts of the business to reduce debt taken on to survive the coronavirus pandemic.

TUI, which last year took 23 million people on holiday, lost 1.1 billion euros ($1.3 billion) in the three months through June after COVID-19 halted travel, wiping out revenue and straining its balance sheet as it burned through about 550 million to 650 million euros per month.

It secured a second credit line from the German government on Wednesday, adding to a 1.8 billion euro state-backed loan taken on in April, and while the CEO said it might not need to use the latest line, the focus is now on debt.

“A rights issue or whatever kind of measure is something we are looking at,” Chief executive Fritz Joussen told reporters on Thursday.

Asked how big a rights issue could be, Joussen said it was “early days”, and he did not say which parts of the business were up for sale, although he insisted that any sales would not be distressed.

The state loans are due to be repaid in summer 2022 and banking sources have suggested that TUI could sell all or part of its 49% stake in the Spanish hotel chain RUI Hotels & Resorts.

With the latest German aid package, TUI said liquidity was 2.4 billion euros, giving it confidence it can make it through to 2021 even as the pandemic continues to hit travel, and as it approaches winter when holiday companies generally lose money.

TUI said that it expected normality to return by 2022 and was encouraged by bookings for summer holidays next year which were up 145%. Analysts were sceptical.

“We think plans to reduce leverage in 2021 and reach normalised profit growth in 2022 are ambitious,” said Jefferies.

The company’s London-based shares fell 5% to 347 pence. The stock has lost 63% of its value in the year to date.

TUI’s quarterly underlying operating loss of 1.1 billion euros as revenues plummeted 98.5% to 72 million euros, compared with earnings before interest and tax of 102.3 million euros in the same period last year.

Bookings for this summer are down 81% from last year and Joussen said the situation was still “fragile”. TUI’s recovery was set back by new UK restrictions on travel to Spain.

The company said it was making progress with the cost cuts needed to help it withstand the crisis. It warned in May that it would need to axe 8,000 jobs and save 300 million euros a year.

($1 = 0.8460 euros)

Reporting and photo: Reuters

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Atmosphere Core expands in South Asia with Atmosphere Living ultra-luxury residences

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Atmosphere Core, a globally renowned name in hospitality, has announced the launch of Atmosphere Living as part of its continued expansion in South Asia. Headquartered in India, this new company will offer branded ultra-luxury residences with customised end-to-end amenities and indulgences, including coffee lounges, wine cellars, private transport, and bespoke concierge services.

The global branded residences market has experienced a remarkable 150 percent growth over the past decade, and projections indicate a surge in demand. With the real estate veteran Sandeep Ahuja at the helm as Managing Director, Atmosphere Living is strategically positioned to capitaliSe on this demand.

Atmosphere Living will focus on a conscious design philosophy. All properties will be built in harmony with the environment and will incorporate features such as smart recycling, efficient waste and water management, and green energy solutions.

Sharing his insights on the launch, Salil Panigrahi, Managing Director, Atmosphere Core, said, “Atmosphere Living will bring a distinctive offering to India, and is a brand to watch out for. It will combine Ahuja’s decades of experience, knowledge, and industry network in real estate with Atmosphere’s hospitality expertise, introducing unparalleled serviced residences in India.”

Positioned in major metropolitan areas, established second-home destinations, and undiscovered scenic locales nationwide, these projects will also present lucrative investment opportunities. Elite homeowners will have the option to lease their residences back to Atmosphere Living, allowing them to be rented out for income generation.

Sandeep Ahuja, Managing Director, Atmosphere Living, said, “There is currently a gap in the Indian realty landscape for ultra-indulgent serviced homes catering to affluent consumers. We aim to bridge this gap by curating serviced homes that offer indulgences such as entering homes using smart key cards, 24/7 butler services, fine dining, and co-working spaces, among others. Our ultimate desire is to enable our customers to experience a life of true luxury and exclusivity.”

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A night of celestial wonders, luxury, and cosmic inspiration at Anantara Kihavah SKY Observatory by British astronaut Tim Peake

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Anantara Kihavah Maldives Villas celebrated a historic  milestone with the exclusive visit of the renowned British astronaut, Tim Peake. On the evening of November 2, Astronaut Peake hosted an exclusive space talk at SKY Observatory, the finest  overwater observatory in the Indian Ocean, housing the most powerful telescope in the Maldives. 

Perched gracefully over the pristine Maldivian waters, SKY Observatory provided an idyllic setting for  this extraordinary event, complemented by a stunning sunset. The exclusive gathering attracted a full  house of eager guests to a delightful evening that seamlessly blended science, luxury, and natural  beauty. 

The evening commenced with a lovely cocktail reception, where guests were serenaded by the soulful  tunes of a live saxophone band. Attendees savoured exquisite cocktails and canapés as they eagerly  awaited Tim Peake’s presentation. 

Tim Peake’s talk unveiled his personal journey, where he shared his path to becoming an astronaut  and narrated the rigorous training that astronauts undergo. He provided insights into life in space, the  daily challenges faced by astronauts, and the awe-inspiring experiences he encountered during his 

historic mission. He also offered a glimpse into his exciting future projects, leaving the audience both  inspired and spellbound. 

Following Tim’s presentation, an interactive Q&A session allowed guests to engage directly with the  British astronaut. The audience posed thoughtful questions, deepening their understanding of  astronauts’ unique experiences and the intricacies of space exploration. 

The event was further enriched by the presence of the resort’s three SKY gurus, Hammadh Rasheed,  Zunnoon Ahmed, and Ali Arushal, who conducted a stargazing session for the guests afterward. 

The success of the event was evident in the overwhelmingly positive feedback from attendees, who  left with a deeper appreciation for space exploration and a memorable evening to cherish. 

The evening marked a significant moment in Anantara Kihavah’s history, showcasing the resort’s  commitment to offering unique and memorable experiences for its guests. The presence of Tim  Peake, a celebrated astronaut and highly accomplished author, added an extraordinary dimension to  the resort’s already spectacular offerings. 

Tim Peake is a renowned British astronaut who made history as the first official British astronaut to  visit the International Space Station (ISS) and conduct a spacewalk during his six-month mission. He  also achieved the remarkable feat of running the London Marathon from space. Beyond his  extraordinary space endeavours, Tim is also a bestselling author with his most recent book Space: A thrilling human history published earlier this month. 

An astronomer’s paradise, Baa Atoll in the Maldives, is one of the best places on earth to enjoy  stargazing due to its proximity to the equator. Anantara Kihavah Maldives Villas promises a voyage of  discovery on a private Indian Ocean Island, with Sky—an overwater observatory and luxury cocktail  bar—providing guests a chance to sip champagne under the stars and explore the Universe.

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Visit Maldives website adds atolls segment to showcase diverse regions

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Maldives Marketing and Public Relations Corporation’s (MMPRC/ Visit Maldives) has added a new segment to the official Visit Maldives Website specified for atolls showcasing the diversity of the Maldives.

The segment, now live at atolls.visitmaldives.com provides in depth information regarding the different regions of the Maldives, divided by atolls, to refine the traveller’s experience, commencing with an in-depth exploration of Addu Atoll and Fuvahmulah Atoll.

With 26 atolls, the Maldives offers a wide array of unique accommodations and awe-inspiring travel experiences, and this informative section of our website will serve as a gateway to discover the hidden treasures unique to each area. This falls under MMPRC’s initiatives to encourage tourism growth in all regions of the Maldives, broadening exposure to the diverse tourism products available in the Maldives.

The goal is to elevate Visit Maldives’ digital marketing landscape by showcasing the Maldives as more than just a honeymoon destination with various accommodation options. This initiative is driven by a desire to increase awareness about the distinctive offerings within each of the Maldives’ atolls. It aims to positively shape their perception of the Sunny Side of Life brand by curating engaging content that highlights the unique features of the atolls and diverse experiences available in the islands.

Additionally, the initiative will target the affordable luxury market to promote the Maldives as the most appealing option for short holidays and weekend getaways under a unified Maldives brand umbrella.

MMPRC aims to continue exploring other atolls in the Maldives as well, encouraging growth and tourism development in all regions of the Maldives, building on the foundation we have created to promote the destination beyond the traditional paradigms of sun, sand, and sea.

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