Fosun plans to spin off Club Med for Hong Kong IPO, raising US$500 million

Fosun, a Chinese multinational conglomerate, is considering spinning off its premium resort brand, Club Med, for a Hong Kong listing, raising at least US$500 million (HK$3.9 billion), Bloomberg reported.

Fosun Tourism, which holds Club Med and other assets such as Atlantis Sanya, China, was privatized and delisted in March of last year. According to the 2024 interim report, Club Med generated 8.17 billion yuan (HK$9.41 billion) in revenue, accounting for 86.77 percent of Fosun Tourism's revenue.

Club Med has sales and marketing operations in 40 countries and regions across six continents as of the end of June 2024, operating 67 resorts. Its first-half of 2024 turnover reached 8.89 billion yuan, up 10.3 percent. Its global average room occupancy rate was 70.4 percent, up 0.8 percentage points year on year. The adjusted earnings before interest, taxes, depreciation, and amortization rose 0.77 percent year on year to 2 billion yuan.

Fosun has reportedly hired BNP Paribas, HSBC, and JPMorgan Chase to handle the matter.

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