Strategic options reportedly being considered for Club Med as its Chinese owners seek to cut debts have been denied.
The French all-inclusive resort operator comes under the ownership umbrella of Fosun Tourism Group, part of the Fosun International conglomerate.
The Shanghai-based company has been informally fielding interest from potential buyers, according to a report by Bloomberg, citing sources knowledgeable with the matter.
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Club Med could be valued at around $1.5 billion, it was suggested.
However, a company spokesperson reportedly said it had no intention of selling Club Med.
Fosun Tourism Group, quoted on the Hong Kong Stock Exchange, last month reported a “sharp recovery” in Club Med’s net profit for the nine months to September.
Club Med saw sales rise 145% year-on-year and a 96% recovery from the same period in pre-pandemic 2019.
The group said: “In addition, benefits from sequential and improved recovery, execution of the right business strategy and effective cost savings significantly improved the net profit of Club Med compared to the same period of 2021, and was even better than that of the same period of 2019.”
Capacity at Club Med increased by 78.5% compared to the same period last year and recovered to 91% against 2019 levels, according to the company.
“The gradual lifting of travel restrictions in various countries, has resulted in the group’s accelerated recovery of its businesses outside mainland China,” Fosun said.
Cumulative bookings for Club Med for the second half of the year increased by about 38% over last year and 16% compared to the final six months of 2019.
Fosun also owns Thomas Cook UK, which reported year-on-year growth of 340% for the nine months.
Delivering the results, Fosun Tourism Group chairman and chief executive Qian Jiannong said: “The impact of the pandemic on the tourism industry has gradually eased and most regions have started recovering.
“The strong momentum of the Club Med business gives us full confidence in future development prospects.
“We will make every effort to seize the opportunities to actively promote the development of our business globally and strive to create a happier lifestyle for consumers.”
Club Med was acquired in 2015 for about $968 million. Fosun Tourism Group has since expanded Club Med’s business, including opening three resorts in the first half of the year, to operate 66 worldwide and plans to open 14 more by the end of 2024, including seven in China.
Fosun’s leisure arm, which also includes jewellery and drinks, reduced its losses by 95% in the six months to June 30, mainly due to the recovery of the tourism group’s overseas business.
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