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Fosun-owned Club Med to open Hokkaido resort in 2017

By Shi Jing (China Daily) Updated: 2016-06-21 09:32

Fosun-owned Club Med to open Hokkaido resort in 2017

A view of Fosun Group signage in Shanghai. Fosun bid 24.60 euros ($30.20) per share for Club Med on Jan 2, 2015, which values the iconic holiday brand at 939 million euros. [Photo/IC]

Club Med, the famous France-based resort brand, signed a cooperation agreement with Yuyuan Tourist Mart Co Ltd on Monday.

The two companies will establish a new resort, called Club Med Tomamu, within the Hokkaido Tomamu Resort area. It is expected to start operation in 2017.

The new resort, which will be Club Med's second resort in Hokkaido, Japan's northernmost island, will feature more than 20 ski trails of various difficulties and boast more than 50 activities, including professional ski courses and instruction.

Yuyuan Tourist Mart, in which Fosun International Ltd holds a 29.9 percent stake, acquired in November a 100 percent stake in Hoshino Resorts Group's ski destination Resort Tomamu in Hokkaido. Yuyuan paid 18.36 billion Japanese yen ($175 million) for the property.

Since the acquisition was completed, the number of Chinese tourists to Tomamu increased by three times. Occupancy rates, sales revenue and profit have increased by 80 percent so far, said Xu Xiaoliang, chairman of Yuyuan Tourist Mart.

In March of 2015, Fosun International bought 98 percent of French company Club Mediterranee SA, the operator and brand-owner of the Club Med resorts, for 1 billion euros ($1.13 billion). So far, Club Med has built four resorts in China while the country has already become the second-largest market for the resort company.

As Henri Giscard d'Estaing, chief executive officer of Club Med pointed out, a growing number of people have chosen to travel to Hokkaido, a destination that is especially popular among families and couples fond of outdoor activities.

"Club Med's first resort built in Sahoro has always been fully booked. Therefore, to set up another higher standard resort in central Hokkaido will not only meet the growing demand of tourists visiting Japan, but also help expand Club Med's mapping in Hokkaido," he said.

"We have noticed in recent years that value in the property industry does not simply come from the purchases of land but rather combining industries relevant to happiness and fashion with properties," said Gong Ping, president of Fosun Property Holdings.

Guo Guangchang, chairman of Fosun International, said that the company will look for more investment opportunities in the business and family sectors. Industries that are closely related to people's wealth, health and happiness will be the company's long-term goal.

 

 

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