Summary of Key Points
On August 28th, Club Med, a Mediterranean resort group under Fosun International, submitted an application to list on the Hong Kong Stock Exchange. This marks the third capitalization move for the asset in nine years: it was privatized and delisted from the Paris Stock Exchange in 2015, listed on the Hong Kong Stock Exchange as part of Fosun Travel & Leisure in 2018, and then delisted from the Hong Kong Stock Exchange in 2025. Now, Club Med is attempting to list independently on the Hong Kong Stock Exchange. Club Med is the largest resort brand in the world (with the highest turnover in 2025) and also has the largest number of ski resorts, covering four major ski destinations. However, its growth rate has slowed down in recent years, and profits have declined. Nevertheless, Fosun still regards it as a core asset and is promoting a transformation towards a lighter asset model through this listing. At the same time, Fosun is pursuing a Real Estate Investment Trust (REITs) strategy for its heavier assets, such as Sanya Atlantis.
Detailed Analysis
1. Three “Relocations” in Nine Years: Fosun's Strategy for Club Med
Each of Fosun's three capitalization moves for Club Med had a clear purpose:
- 2015 Privatization and Delisting: Fosun spent 939 million euros to acquire Club Med from the Paris Stock Exchange in order to take full control of this 76-year-old brand and facilitate its transformation towards a more premium offering (for example, by discontinuing its mass-market products).
- 2018 Packaging and Listing: Fosun included Club Med and cultural and tourism assets such as Sanya Atlantis in the Fosun Travel & Leisure listing, hoping to raise funds through the tourism concept. However, the market conditions were poor at the time, and the stock price fell below the issue price shortly after the listing. Subsequently, the pandemic caused Fosun Travel & Leisure to incur losses of over 5.8 billion euros, resulting in a long-term slump in the stock price.
- 2025 Delisting and Independent Listing: Fosun delisted Fosun Travel & Leisure to relieve it from the short-term performance pressures of the secondary market. Now, by listing Club Med independently, Fosun aims to achieve a higher valuation for this core asset and give it its own financing platform, allowing it to operate without relying on Fosun, in line with Fosun's overall strategy of focusing on lighter assets (earning money through brands and operations rather than acquiring land and building properties).
2. Does Club Med's Title as the “World's Largest Resort Brand” Really Hold Weight?
Club Med's status as the largest resort brand is well-deserved:
- Leading Position: In 2025, it had the highest turnover among all resort brands globally, ranking first in Europe, Africa, the Middle East, and the Asia-Pacific region. It also has the largest number of ski resorts and is the only brand that offers all-inclusive packages at all four major ski destinations: the Alps, Hokkaido, North America, and Northeast China.
- Differentiated Advantages: Club Med was the first to introduce all-inclusive packages (covering accommodation, meals, transportation, and entertainment for a worry-free vacation) and professional child care services (Mini Club Med), giving it a competitive edge over rivals such as Sandals, which focus only on the Caribbean, and RIU, which focuses only on Europe. Its global presence is also more extensive.
- Dominant Position in a Diversified Market: The top five resort brands in the global market together account for only 4% of the market share, while Club Med accounts for 1.1% overall. However, in the all-inclusive package segment, it holds a 5.3% market share, making it the most influential player in this niche market.
3. Slowing Growth Rates: A Blessing or a Curse for the Premium Strategy?
Club Med's performance has been somewhat inconsistent in recent years:
- Slow Revenue Growth: Revenue increased from 1.862 billion euros to 1.949 billion euros from 2023 to 2025, with a growth rate declining from 3.3% to 1.3%.
- Sharp Profit Decline: Net profit plummeted from 68.76 million euros to 10.91 million euros, a decrease of over 80%.
- Paradoxical Situation: Although the average ticket price has increased (from 220 to 235 euros), the number of guests (around 1.5 million) and occupancy rates (62%) have remained unchanged. The issue lies with the premium strategy: higher prices have driven away some mass-market customers, while the growth in new premium customers has not kept up. Nevertheless, the all-inclusive package segment (7.6% growth) and the ski resort segment (9.9% growth) are still showing high growth rates. As long as Club Med can attract more premium customers, there is still room for improvement in its performance.
4. Fosun's Asset Splitting Strategy: Light Assets via IPO vs. Heavy Assets via REITs
After the delisting of Fosun Travel & Leisure, Fosun is dividing its cultural and tourism assets into two paths:
- Heavy Assets via REITs: Assets like Sanya Atlantis (hotel + water park) are being prepared for a public REITs listing on the Shanghai Stock Exchange. In simple terms, this involves packaging real estate into “stocks” for sale, with investors receiving rental dividends, allowing Fosun to quickly recover funds and reduce debt.
- Light Assets via IPO: Club Med's brand and operational capabilities are considered light assets. An independent listing will enable it to raise funds on its own, potentially achieving a higher valuation and reducing its dependence on Fosun's funding. This combination of strategies is key to Fosun's goal of streamlining its operations and focusing on its core competencies.
5. Future Growth Opportunities for Club Med: Can It Turn Things Around?
There are several promising areas for Club Med's future growth:
- Global Expansion: The brand plans to open 85 more resorts by 2030 (currently 69), including luxury resorts in rural areas and coastal locations, as well as new projects in the United States, Canada, Indonesia, and Italy, which could generate new revenue.
- New Attempts in the Chinese Market: Fosun's previous attempt with the suburban resort brand Joyview was unsuccessful. Now, it has launched the “White Ark” urban resort concept (with the first store in Longwu, Hangzhou), bringing all-inclusive packages to urban areas and targeting short-weekend leisure travelers. This could become a new growth opportunity.
- Digitalization and Sustainability: Direct booking channels account for 73% of sales (reducing intermediaries' commissions), and the brand is pursuing green building certifications to attract environmentally conscious customers. AI and digital technologies can also improve operational efficiency, helping to reduce costs and enhance the customer experience.
In summary, Club Med's listing is Fosun's way of “revaluing” this 76-year-old brand and testing the success of its premium strategy over the past twelve years. As long as it can address the issue of customer growth, this established brand still has the potential to thrive in the high-growth resort market.