Accor buys 28.9% stake in Club Med

paid 252 million euros for a 28.9% stake in Club Med – making it the main shareholder.

It has bought the 21.2% of shares held by the Agnelli Group and the 7.7% held by Caisse des Depots et Consignations.

Subject to approval by competition authorities, the acquisition is part of Club Med’s plans to move its product upmarket.

The news comes as Club Med reveals it has reduced its winter losses for the six months to end of April to 4 million euros, compared to 29 million euros in winter 2003. Winter operating income was up at 32 million euros, compared to 12 million euros in winter 2003.

Revenues were 784 million euros for the period, compared to 785 million for the first half of winter 2003.

The US was the best performing destination, while Asia saw an upturn and France showed “resilience in a lacklustre market”.

Club Med chairman Henri Giscard d’Estaing said: “The association of Club Med with one of the industry leaders as its partner in development represents an exceptional opportunity for Club Med to become the undisputed leader in the sector of upscale, friendly holidays.”

The bid to move the Club Med brand upmarket sees the opening of new premium villages. These include the four-Trident La Palmeraie, in Marrakesh (opening this weekend), the El Gouna in Egypt and Coral Beach in Israel, both three-Tridents.