Tourism giant profit growth on track, to sell LateRooms

LONDON / BERLIN - Reuters

TUI Group, the world’s largest leisure tourism group, said it was on track to grow underlying profits by between 10 and 15 percent this year as it announced plans to sell British hotel booking website LateRooms.

The group, formed in December from the merger of London-listed TUI Travel and German majority owner TUI AG , said its second-quarter underlying loss before interest, tax and amortization narrowed to 167.8 million euros ($188.7 million), against a loss of 201.6 million one year ago.

Ahead of a capital markets day in London later on May 13, TUI said it would put LateRooms on the block, but did not give further details.

That followed an announcement on May 12 that it would simplify its structure by combining its tour operating, hotel and cruise ship businesses into one unit, moves which signaled that plans for the enlarged company were on track, TUI said.

“Our post-merger integration process is ahead of our original plan. Our growth phase is gaining momentum,” joint chief executives Fritz Joussen and Peter Long said in a statement.