Chinese conglomerate Fosun International is exploring the sale of a minority stake in its luxury resort chain Club Med, aiming for a valuation of the entire business at $800m, Reuters reported.

The company has recently held informal discussions with advisers and possible buyers, though no official proposals have been made public, the report said.

The move is part of Fosun’s broader strategy to divest non-core assets and address investor concerns regarding its debt levels.

The news follows a previous report by Bloomberg in November 2022, which suggested Fosun was gauging interest in Club Med at a full-business valuation of $1.5bn.

At that time, Fosun stated it had ‘no plans’ to sell the all-inclusive resort operator.

Fosun’s recent activities include plans to sell a 5.6% stake in Banco Comercial Portugues for €235.19m ($256.07m) to strengthen its working capital.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Additionally, it is in advanced negotiations to offload its Thomas Cook package holiday brand to eSky, a Polish online travel agent.

Fosun acquired Thomas Cook for £11m ($13.87m) following its collapse in 2019.

Club Med, part of Fosun Tourism Group, is listed on the Hong Kong Stock Exchange. It operates the Atlantis luxury resort in Hainan, China, and has a market value of around $652m.

Fosun acquired the Paris-based Club Med in 2015, valuing it at €939m. Currently, Club Med operates nearly 70 resorts globally, with locations in the Maldives, Hokkaido, and Cancun.

The potential divestment comes as the global tourism industry anticipates a full recovery from the pandemic this year.

Last October, Club Med opened Club Med Urban Oasis Xianlin Nanjing Resort in China. It is claimed to be the world’s first urban oasis resort.

Located in the centre of Nanjing, the resort offers a 1,200m² indoor heated water park, an outdoor explore park, an outdoor water screen light show, sports activities and a U Bar.