Fosun International, the Chinese conglomerate, is attempting to relist Club Med on the Hong Kong stock exchange as ClubMed Lifestyle Group, after taking its tourism unit private just a year prior. This move aims to make Club Med a more capital-efficient entity by focusing on brand and operations, while Fosun retains ownership of key real estate assets like Atlantis Sanya and property development. The IPO comes with a strategic goal to expand Club Med's portfolio from 69 to approximately 85 resorts by 2030, primarily through leases and management contracts rather than owned assets. However, the company faces substantial lease liabilities, estimated at around $1.45 billion, indicating it is not yet truly asset-light like its competitors Marriott or Hilton.
The financial picture for Club Med reveals some challenges. While 2025 revenue was $1.95 billion, profit was a thin $10.9 million. Revenue growth in 2025 was only 1.3%, with resort revenue remaining largely flat and average daily rates increasing only with inflation, from $220 to $235 over three years. Occupancy has been stagnant at 62% for three years. The company reported $57 million in net profit in the first half of the year, but operating income declined to $160 million in 2025 from $181 million in 2023, partly due to higher operating expenses from its premium repositioning strategy. Club Med's EBITDA margin of 20% is also significantly lower than Hilton's 30%.
This marks Fosun's second attempt at a public listing for Club Med, following a 2018 Hong Kong listing and a subsequent privatization in March 2025. The current IPO seeks to raise over $500 million, with proceeds earmarked for global expansion, investment in digital and AI capabilities, and support for the parent company. There are also notable governance and strategic tensions, as Club Med generates 60% of its business from Europe, the Middle East, and Africa, yet is listing in Hong Kong. The longtime CEO, Henri Giscard d'Estaing, who publicly favored a Paris listing, was also ousted.
