Spanish chain Riu Hotels & Resorts has upped its stake in Tui by buying 1.1 million shares.

The investment of almost €10.4 million increases Riu’s stake in the German travel giant from 3.38% to 3.56%.

The chain was founded in Mallorca by the Riu family in 1953 and is still owned by the third generation.

Luis Riu, Riu Hotels & Resorts chief executive, said the purchase “represents a further step in the historic collaboration between the two companies, and further evidence that the fourth generation of the family, just like the third, remains committed to the future of joint business with the world’s leading tourism group”.

The relationship between Tui and Riu dates back 50 years, and was formalised in 1977 with the creation of Riu Hotels SA, a hotel development company with a 49% stake held by Tui, and 51% by the Riu family.

RIUSA II SA was founded in 1993 as a hotel operations company in which both firms hold a 50% stake.

Riu has been a shareholder of Tui since 2004 and the chain now has 93 hotels in 19 countries.

The share purchase follows the news last week that Tui chief executive Fritz Joussen spent almost €1 million on shares in the German travel group.

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