Omran, TUI to develop five new joint hotels in Oman

TUI Group and OMRAN Group, Oman’s Tourism Development Company, have signed a strategic agreement, outlining a long-term strategic partnership.

 

At the heart of the agreement is the construction and operation of a first cluster of five new hotels in the Dhofar Governorate under leading TUI hotels brands, which are expected to welcome guests from all over the world as early as winter 2028.

 

The agreement also includes plans for Oman to become a 1.4 per cent strategic shareholder in TUI Group through the OMRAN Group.

 

The collaboration aims to position Oman as a leading sun-and-beach destination, underscoring the pivotal role of tourism in Oman Vision 2040.

 

Salem Al Mahruqi, Minister of Heritage and Tourism, stated: “This term sheet represents a pivotal milestone in reinforcing Oman’s position on the global tourism map. In strategic collaboration with OMRAN Group and TUI, we are committed to developing world-class tourism destinations and experiences that not only attract a greater number of visitors, but also create high-quality employment opportunities and draw impactful, value-driven investments. These initiatives support the Ministry’s comprehensive tourism development plan across all governorates, raising the level of competitiveness through exceptional services and diverse experiences that cater to the evolving preferences of international travellers.”

 

"With this partnership, we are taking a decisive step towards establishing Oman as a successful holiday destination. As in other regions of the world, TUI is developing vertically integrated destination clusters – something only TUI can do. Examples of this can be found in North, East and West Africa, Central America and the Caribbean. A cluster consists of hotels, experiences and cruises. In Oman, too, we are working with our partners to develop a destination that stands out for its quality, sustainability and uniqueness," explains Sebastian Ebel, TUI Group CEO.

 

Azzan Al Busaidi, Undersecretary for Tourism, Ministry of Heritage and Tourism, and Chairman of OMRAN Group, said: “This milestone reflects OMRAN Group’s commitment to developing distinctive tourism destinations that elevate Oman’s global standing. By combining international expertise with our local vision, we are taking the first step toward unlocking the country’s full potential as a year-round destination, driving sustainable economic growth, and creating meaningful opportunities for our people and businesses in alignment with Oman Vision 2040.”

 

“There is high demand among holidaymakers for Oman – but so far limited supply. TUI's strong hotel brands – including ROBINSON, TUI Blue, RIU, Jaz and The Mora –will also bring their captive customer base and loyal guests to Oman. We see this new destination cluster as a great opportunity,’ adds Peter Krueger, Chief Strategy Officer and CEO Holiday Experiences at TUI Group. “Today, we have over 450 hotels. TUI is the leading brand in the leisure hotel industry.”

 

As part of the partnership, Oman is contributing land and capital to a joint venture.

 

OMRAN Group and TUI will hold 45% in this Joint Venture each and another private investor will hold 10%.

 

TUI is contributing its comprehensive expertise in hotel operations, travel distribution, airlines and local experiences.

 

As part of this strategic partnership, OMRAN Group will become a 1.4 per cent strategic shareholder in TUI Group, acquiring newly issued TUI shares at a price of €9.50 ($11.16) per share with a 3 year lock-up period in exchange for TUI’s 45% share in the Joint Venture.

 

The new partnership is the next step for TUI Group in opening up new travel destinations thanks to its integrated business model with innovative projects and strong alliances – to the benefit of guests, partners and shareholders.

 

The joint projects will be developed to the highest sustainability standards, which integrate economic, social, cultural, and environmental priorities.

 

These developments are expected to generate significant direct and indirect employment opportunities, boost SME participation, and solidify Oman’s position as a premier year-round tourism destination. -TradeArabia News Service