We report on the first diode-pumped laser operation of thulium-doped Lu2O3. With a very compact setup an output power of 75 W and slope efficiencies of around 40% with respect to the incident pump power were achieved at room temperature. Free running laser operation was observed at wavelengths of 2065 nm and 1965 nm. With a birefringent filter the wavelength could continuously be tuned from 1922 nm to 2134 nm. The thermal conductivity of Tm:Lu2O3 was measured for different dopant concentrations and is compared to the one of thulium-doped YAG.