Club Med, a renowned name in the all-inclusive resort industry, is looking to expand its portfolio from 69 to around 85 resorts, primarily through a business model that does not involve ownership of these new locations. This strategy aligns with the company’s new financial framework following a significant restructure.
Historic Evolution and Strategic Shift
Established in 1950, Club Med has been a pioneer in the all-inclusive resort model, building a prominent reputation over the decades. However, as the brand is set to be introduced to public investors in Hong Kong, the focus has shifted from owning properties to operating them under a leased model, which is detailed in their recent financial filings.
Ownership and Challenges
The Chinese conglomerate Fosun, led by Guo Guangchang, became the owner of Club Med in 2015 following a competitive eighteen-month acquisition battle with Italian investor Andrea Bonomi. Under Fosun’s ownership, the company endured significant challenges. Guo’s temporary disappearance in 2015 during a governmental probe made headlines, and the subsequent collapse of Thomas Cook in 2019 posed another obstacle, given Fosun was its largest shareholder.
Fosun Tourism Group responded by purchasing the Thomas Cook brand and its assets for £11 million from the liquidators, showcasing their resilience in overcoming market adversities. Despite these hurdles, the company continues to drive their growth strategy, maintaining Club Med’s reputation while navigating through complex business landscapes.
Reporting based on coverage first published by skift.com.