Fosun Tourism Announces 2024 Interim Results: Focuses on Asset-light Operations and Captures Global Growth Momentum

Results Highlights:

• Business Volume^[1] reached RMB10,649 million, with year-on-year growth of 11%, while revenue increased by 6% year-on-year to RMB9,415 million 

• Club Med's performance hits record high, with Business Volume valued at RMB8,894 million, representing an increase of 10% year-on-year

• Atlantis Sanya's Business Volume reached RMB866 million, with a record-high average occupancy rate of 89.6%

• The phase II of Taicang Alps Resort project was officially signed, marking a new milestone in the implementation of the asset-light strategy

(Hong Kong, 22 August 2024) – Fosun Tourism Group ("Fosun Tourism" or the "Group", Hong Kong Stock Exchange Stock Code: 1992), a world-leading leisure-focused integrated tourism group, is pleased to announce its interim results for the six months ended 30 June 2024 (the “Period”). During the Period, “Club Med and Others”, “Atlantis Sanya”, “Vacation Asset Management Center”^[2], and “Foryou Club and Other Services” (collectively referred to as “tourism operation”) recorded RMB10,649 million in Business Volume, which is a year-on-year increase of 11%. The Group's revenue rose to RMB9,415 million, a year-on-year increase of 6%. Adjusted EBITDA was RMB2,087 million, with profit attributable to equity holders totaling RMB322 million. Excluding the one-off gain on disposal of Resort, profit attributable to equity holders of the Company increased by 20% as compared with the same period in 2023.

Club Med achieved new high with brilliant performance in all three regions

In the first half of 2024, Club Med business achieved another record-breaking performance, driven mainly by the significant growth in mountain business and the strong rebound in the Asia Pacific region. The Business Volume amounted to RMB8,894 million, representing an increase of 10% as compared to that of the same period in 2023. The adjusted EBITDA of its Resort operation increased to RMB2,003 million for the first half of 2024, versus RMB1,987 million for the same period in 2023. With the “Upscale” strategy, the Average Daily Bed Rate was RMB1,922, at constant exchange rate, 8% higher when compared with the same period in 2023. The global average Occupancy Rate by Room of Club Med was 70.4%, 1 percentage point more compared with the same period in 2023.

Despite global economic uncertainties, all three regions, namely the Americas, EMEA and Asia Pacific, achieved profitable growth. The Business Volume of Club Med in EMEA region increased by 6% compared with the same period in 2023, benefiting from the new La Rosière Exclusive Collection Space in the French Alps. The Americas region continued to have a strong business activity, and the Business Volume increased by 10% as compared to the same period in 2023, thanks to the “halo” effect of the Québec Charlevoix Resort in Canada propelling the business development across North America, and the solid momentum of ski vacations in the Alps continued to boost growth in the Brazilian market.

Asia Pacific recorded a strong growth following the lifting of travel restrictions, and the Business Volume in the first half of 2024 increased by 32% compared to the same period in 2023. The Business Volume of Club Med in Mainland China recorded RMB382 million, marking a 20% year-on-year increase and 33% higher by excluding the non-recurring items of the same period in 2023. China outbound business increased by 5 times as compared to the same period in 2023, meanwhile inbound travel to Chinese Resorts increased by 7 times as compared to the same period in 2023.

During the Period, the capacity of Club Med increased by 4% against the same period in 2023. Club Med Joyview Heilongtan Resort has been open since July and was the first Club Med Joyview Resort in Southwestern China. By 2026, together with new opening and renovation, partially offset by closure of obsolete Resorts, Club Med anticipates an increase of annual capacity of approximately 13% compared to that in 2023.

It is expected to witness a sustainable growth in bookings in the second half of 2024 and the first half of 2025 as the demand for summer holidays and ski season of next year continues to gain momentum. As of 3 August 2024, the accumulated bookings for the second half of 2024, expressed in Business Volume of Stays, Tours and Services at constant exchange rate, increasing by approximately 6% compared to that for the second half of 2023 as of the same period in 2023. As of 3 August 2024, the cumulative bookings for the first half of 2025, expressed in Business Volume of Stays, Tours and Services at constant exchange rate, increasing by approximately 11% compared to that for the first half of 2024 as of the same period in 2023.

Henri Giscard d’Estaing, Co-CEO of Fosun Tourism Group, President of Club Med, said, “Despite the challenges posed by macroeconomic uncertainties and geopolitical tensions within the global tourism industry, and following record figures in 2023, Club Med has achieved another record-breaking semester and has again demonstrated the success and relevance of its strategic shift towards the high-end segment of its resort portfolio and its leadership in mountain vacation industry. Our resort portfolio is now 100% Premium and Exclusive Collection. In our 74-year history, we’ve never had a collection of resorts as stunning and luxurious as we do today. Looking forward, we will continue to develop resorts in the world’s most beautiful destinations, leveraging our global resources and operational expertise. We will also advance digital transformation and integrate artificial intelligence technologies to elevate both the customer experience and operational efficiency. Our commitment is to become a leading global brand in sustainable tourism, creating a unique lifestyle imbued with the spirit of Club Med, enabling us to navigate any challenges that come our way.”

Focuses on asset-light operations, domestic business remains resilient

As a leading one-stop marine-themed premium integrated resort destination in China, Atlantis Sanya continues to lead the market. In the first half of 2024, the resort operating business achieved a Business Volume of RMB866 million. The average Occupancy Rate by Room reached a record high of 89.6%, representing an increase of 3 percentage points over the same period in 2023, and the number of visits increased to a record-breaking 3.44 million as compared with 3.40 million for the same period in 2023. Affected by changing supply and demand trends of the domestic travel accommodation market, the resort proactively adopted flexible pricing tactics to maintain the competitive edge of its products. During the Period, the Average Daily Rate by Room reached RMB2,044, with adjusted EBITDA totaling RMB294 million.

As for the Vacation Asset Management Center, Taicang Alps Resort project was undergoing a ramp-up period of the business. Benefiting from the growing demand for urban vacations and ice and snow tourism, as well as its continuous strengthening of resort operations, the project’s performance has steadily improved. During the Period, it recorded a Business Volume of RMB113 million with approximately 290,000 visits. The phase II of Taicang Alps Resort project was officially signed in June, with a total investment of over RMB5 billion. The project was invested by the Taicang Government and operated and managed by the Group, marking a new milestone in the implementation of the asset-light strategy of Fosun Tourism. Benefiting from the operational improvement of Club Med Lijiang Resort and the renewal of the AMAZE Snow Mountain Camp, Lijiang Club Med Resort recorded RMB46 million in Business Volume during the Period, a year-on-year increase of 15%, with approximately 100,700 visits, an increase of 67% over the last corresponding period.

In the first half of 2024, Foryou Club – Fosun Tourism’s global membership platform, continued to exert its strengths in membership operations and digitalization. Consequently, it recorded RMB173 million in Business Volume for the Period, which is basically level with the same period in 2023. As of 30 June 2024, the platform of Foryou Club had over 6.9 million members, representing a year-on-year increase of 13%.

Xu Xiaoliang, Co-CEO of Fosun International and Chairman of Fosun Tourism Group, said, “In the first half of 2024, as the global macro-economy was confronted by many challenges, Fosun Tourism leveraged its global reach and operational strengths to mitigate the risks associated with single regional markets while effectively capitalizing on opportunities in high-potential global markets, resulting in steady performance growth. Looking ahead to the second half, we will continue to focus on asset-light operations, closely follow the trend of urban and ice and snow vacations, focus on bolstering products and brands, optimize operational efficiency, enhance customer satisfaction. Our goal is to achieve sustainable growth and deliver long-term returns for our shareholders."

[1] Business Volume represents the aggregate sales of the Group’s Club Med and Others, Atlantis Sanya, Vacation Asset Management Center, Foryou Club and Other Services of the Group, regardless of whether the property is owned, leased or managed.

[2] The “Vacation Asset Management Center” business segment includes two major projects, Taicang Alps Resort and Club Med Lijiang Resort.