Fosun International to spin off Club Med via Hong Kong IPO

Fosun International has received approval from the Hong Kong Stock Exchange to spin off and launch an initial public offering (IPO) for its subsidiary, Club Med Lifestyle. The move aims to provide greater visibility to the resort brand and its specific business model, which focuses on integrated vacation complexes.

The potential offering could occur as early as late 2024 or early 2027, with estimated proceeds of approximately $500 million. While the separation is intended to help the market better value the brand independently from Fosun’s other assets, the company faces the challenge of convincing investors to grant it a valuation comparable to more profitable and faster-growing hotel groups.

Club Med currently operates roughly 60 resorts across 25 countries. Fosun originally acquired the company in 2015 for an estimated $1.06 billion.