Skift Travel News Blog

Chinese conglomerate Fosun International is hoping its vacation business segment will pull it out of a slump.

Fosun, which owns the Club Med chain of resorts and the Thomas Cook brand, issued a warning on Jan. 20, saying profit for the year ended Dec 31, 2022 is expected to decrease by 80 percent compared to the year before.

It also revealed revenue was expected to climb 10 percent on the prior year in the preliminary assessment. It will likely publish the results in March.

Fosun blamed the “recurrent outbreak of Covid-19 pandemic in 2022 and the turmoil and downturn of the international capital markets, resulting in high business costs and an increase in floating losses in secondary capital market investment.”

However on Monday the company said its domestic Club Med resorts were mostly exceeding pre-pandemic levels, with occupancy in some properties fully occupied. It attributed the recovery to easing of restrictions, and demand for travel due to the Spring festival.

From Jan. 21-27, average occupancy rate at Club Med Lijiang for six nights was 95 percent, and the average occupancy Club Med Guilin 90 percent. Club Med Joyview Anji and Club Med Joyview Qiandao Lake also topped 95 percent. Average occupancy rate of its ski resorts in Beidahu, Yabuli and Changbaishan was 85 percent.

During the New Year vacation, South China Sea resort Atlantis Sanya saw average occupancy rate reach 97.4 percent, with “business volume” exceeding pre-pandemic levels.

“In 2023, I believe that the family-oriented consumer sector that Fosun is engaged in will gradually see an increase in demand, and our offline retail and tourism businesses will be among the first to snap back,” said Guo Guangchang, chairman of Fosun International.

A Fosun-led consortium bought Club Med in 2015 for about $968 million. It recently played down reports it was looking to sell it to reduce debts.

Earlier this month it sold off stakes in four industrial companies for almost $1 billion.

Fosun is also doubling down in Europe with its Cook’s Club lifestyle hotel brand. It is opening a property in Rhodes, Greece, in May, marking its 10th hotel. It opened two earlier this year.

The Hong Kong-listed company acquired the Thomas Cook brand in November 2019.

Fosun’s tourism business sits in its “Happiness” segment of companies.

Fosun International Ltd. is pondering whether to sell French luxury resort chain Club Med as it’s looking to ways to reduce debts, according to a report in Bloomberg.

The Shanghai-based company has been informally fielding inquiries from potential buyers, people knowledgeable about the matter said. Fosun, which owns Club Med through its leisure arm Fosun Tourism Group, could value the resort chain at around $1.5 billion. Shares of Fosum Tourism Group have fallen 19 percent in Hong Kong trading this year, and it suffered a net loss of about $28 million in the first half of 2022.

However, it’s uncertain if Fosun will go forward with any transactions as a representative from the company said it has no intention of selling Club Med.

A Fosun-led consortium bought Club Med in 2015 for about $968 million. The Fosum Tourism Group has since expanded Club Med’s business, including opening three resorts in the first half of this year.

Dubai-based property developer Nakheel announced it has secured $4.6 billion in strategic financing deal to drive what it calls, “the new phase of growth.”

The amount includes refinancing of $3 billion, and additional funds of $1.6 billion.

The developer of Palm Jumeirah said that the finance would be utilised to accelerate the development of its new projects including Dubai Islands and other large waterfront projects.

Looking to redefine the concept of waterfront living, Nakheel announced its plan to develop another man-made island — Dubai Islands — situated along the emirate’s northern coastline, comprising five islands over a total area of 17 square kilometres.

The property developer said Dubai Islands would be home to over 80 resorts and hotels, including luxury and wellness resorts, boutique, family and eco-conscious hotels.

This year, Nakheel announced that it would also relaunch and rebrand Palm Jebel Ali, a project that has been left dormant since 2009.

Recently, one of the mansions at the Palm Jumeirah sold for $82 million, pegging it to be the most expensive house sale ever in Dubai.

The $4.6 billion financing reflects the confidence of the banking institutions in the strategic new focus of the company, a Nakheel spokesperson said.

Despite the challenges of the pandemic, Nakheel said that it has invested in building a strong assets portfolio and pipeline of new developments in the last two years.

The company attributed the robust growth of the Dubai real estate sector to regulatory reforms, such as the issuance of long-term visas, and an economy buoyed by the retail, leisure and hospitality sectors.

The Government of Singapore Investment Corporation has acquired a majority stake in Sani/Ikos Group, a luxury beach resort group in the Mediterranean, for an undisclosed amount.

The transaction that is expected to close in the fourth quarter of 2022, subject to regulatory approval, values the Mediterranean-based luxury resort operator at $2.27 billion.

U.S.-based Oaktree Capital Management, Goldman Sachs Asset Management and Moonstone Investments, French private equity fund Florac and UK-based Hermes Global Private Equity, will be selling their stakes to the Singapore sovereign wealth fund as part of this transaction.

Andreas Andreadis and Mathieu Guillemin will continue to manage the luxury beach resort group as CEOs and co-managing partners, while Stavros Andreadis, who was earlier the managing director of the hotel group, will become honorary chairman, according to a Sani/Ikos statement.

 The three came on board first when Greece-based Sani Resort and Ikos Resorts merged in January 2016.

Speaking about as the hotel group’s efforts to strengthen its brand and expand presence in Europe, Lee Kok Sun, chief investment officer of real estate of the soverign welath fund, said, “We believe this investment will generate resilient returns and is testament to our confidence in the Greek and wider European tourism sector over the long term.”

Sani/Ikos Group develops, owns and operates 10 resorts in Halkidiki, Corfu and Kos islands in Greece, and in Marbella and Estepona in the Iberian Peninsula.