Grand opening of Club Med Guilin   

Fosun’s early moves in capturing opportunities arising from new urbanization

Tourism business is increasingly significant among Fosun’s investments, which reflects the forward-looking strategy of Fosun in capturing opportunities arising from a new round of urbanization.

On 23 September, Club Med, the first overseas investment project of Fosun, held the official opening of its second resort in China, bringing the majestic scenery of Guilin to its guests. Guo Guangchang, Chairman of Fosun, highlighted that Fosun has established a dedicated team namely Fosun Tourism & Commercial Group and will increase its investment in the sector.

Fosun first invested in Club Med three years ago, which is a French-based one-stop holiday resort chain operator with facilities covering destinations around the world. Its first holiday resort in China is Club Med Yabuli located in Harbin, Heilongjiang. Henri Giscard D’Estaing, Chairman and CEO of Club Med, noted that over 100,000 Chinese tourists have visited Club Med in China and aboard.

The initial investment in Club Med was a testing-the-waters move of Fosun targeted at the tourism sector. Today, this sector has become one of the key areas for its future development.

The newly established Fosun Tourism & Commercial Group currently includes the conventional business of Yuyuan and overseas investments in Club Med and Folli Follie, a fashion group based in Greece. Recently, Fosun also invested RMB512 million to acquire 1.97% interest in China International Travel Service, becoming its third largest shareholder.

“While increasing investment in international brands similar to Club Med, we will explore the construction and development of hotels as an owner,” said Mr. Guo. It is not likely for the new round of urbanization to take the form of simply building a city. Local governments generally seek to leverage on market forces to create better schools, hospitals, tourism and cultural experience. Such demand can be perfectly served by the competence mix of Fosun. What follows will be the pursuit of integrating industrial chains, such as combining tourism with sectors relating to healthcare and senior living communities, and with the culture and heritage of a city, which will provide solutions for establishing comprehensive urban complexes and enable the upgrading of both the cities and industries.

Under the global strategy adopted by Fosun in recent years, in addition to the earlier investments in Club Med and Folli Follie, Fosun made three international investments in the first half of the year, including the US high-end female apparel brand St. John, a global medical technology company that designs, develops, manufactures and markets medical and cosmetic devices, Alma Lasers originated in Israel, the developer of personalized and novel diagnostic tests Saladax in the US. Fosun has successfully achieved widening of the geographical coverage for its investments, from Europe all the way to North America and the Middle East.

 
Mr. Guo revealed that, besides making strategic presence in major economies, Fosun will extend its overseas investment to regions with higher population density such as Japan, India and Indonesia this year, mainly focusing on food, tourism, consumption upgrading and industrial upgrading sectors.

THE ICONIC ATLANTIS RESORT TO OPEN IN SANYA ON HAINAN, PRC
KERZNER ENTERS INTO AGREEMENT WITH FOSUN
World Renowned Destination Resort to Be the First Atlantis in China

(10 October  2013 – Shanghai, People’s Republic of China) Fosun International Limited (together with its subsidiaries, “Fosun”), the leading non-state owned enterprise in China, has entered into an agreement with Kerzner International Holdings Limited (“Kerzner”), a leading international developer and operator of destination resorts, casinos and luxury hotels for a new, cutting-edge Atlantis resort along the Haitang Bay National Coast.  This will be the first Atlantis resort in China and only the third Atlantis worldwide.   

Overlooking the stunning South China Sea, Atlantis will offer a sense of awe-inspring discovery, encompassing 58 hectares of unparalleled excitement and larger than life experiences, revolutionary waterplay in Aquaventure Waterpark, exotic marine exhibits and incredible dining experiences.  Already a leading holiday destination, the island will be transformed into the new centre for entertainment in China with the addition of this new trailblazing landmark. Architectural and conceptual planning is under way for Atlantis, Sanya Hainan and construction will begin by the end of 2013 and will be completed in 2016.

 “Atlantis resorts have really defined the destinations they are located in—first in The Bahamas, and then on Palm Island, in Dubai,” commented Guo Guangchang, Chairman of Fosun.  “Atlantis, Sanya Hainan will re-interpret the myth of Atlantis in a new and modern style, whilst pioneering previously unseen experiences to re-define holiday experiences in China and beyond. I am proud to be bringing Atlantis, a must-see resort, to Hainan, China.” 

“I am very excited to be bringing Atlantis to China,” said Sol Kerzner, Chairman of Kerzner. “I know this property will astonish and amaze guests—I have been working with the designers to come up with something that captures all the wonders of Atlantis, with its magnificent sense of discovery, whilst also introducing new experiences specifically for Sanya. I can’t wait to unveil this resort to the world.” 

The Atlantis brand has truly defined integrated entertainment destination resorts.   Each Atlantis resort rises majestically out of the sea, first Atlantis, Paradise Island in The Bahamas, followed by Atlantis, The Palm atop the apex of Palm Island in Dubai, and now in Sanya, People’s Republic of China, rising from the South China Sea.  A vibrant tribute to an aquatic world of wonder, Atlantis resorts are unique, ocean-themed destinations offering a wide variety of fun and entertainment with restaurants by world-renowned chefs; a vibrant range of bars and lounges; extensive slides and rides at Aquaventure Waterpark; fresh and salt-water pools, lagoons and marine exhibits, including an open air marine habitat; and a dolphin interaction and education centre. Guests from around the world will also discover superb accommodation, indulgent spas, luxury boutiques, magnificent event spaces and endless stretches of beach as Atlantis showcases a dazzling, imaginative world of fun and entertainment for all ages. 

Brennan Beer Gorman Architects (BBG), headquartered in New York, has been engaged for the architectural design of Atlantis, Sanya Hainan working with Kerzner’s Development and Design Team led by Sol Kerzner, Chairman and Alan Leibman, CEO, Kerzner International.   Jeffrey Beers, having previously been part of the team who brought to the world both Atlantis resorts, Paradise Island and Atlantis, The Palm, has been enlisted to define the interior design of the resort.

A team of over 10,000 expert craftsmen will be engaged in building of this magnificent ocean-themed Atlantis, Sanya Hainan bring this legendary resort a reality. With approximately 1,300 luxurious guest rooms, the resort will employ over 3,500 staff members to bring the Atlantis experience to life — from marine biologists and lifeguards to top chefs and innovative event planners.

“China is the perfect location for our next Atlantis destination resort.  This resort is set to quickly become  a new landmark in China and will introduce the fun, interactive entertainment experiences at the heart of the Atlantis philosophy. I am thrilled that we are able to continue to innovate on the Atlantis adventure,” said Alan Leibman, CEO of Kerzner. “Fosun is an incredible partner and will ensure that this Atlantis resort offers unprecedented experiences to its guests.”

Qian Jiannong, President of Fosun Tourism  & Commercial Group said, “As a platform under Fosun specializing on investing in consumer goods, retails, tourism and tourism-related property projects, Fosun Tourism & Commercial Group vastly capitalizes on Fosun’s solid foundation of industrial operations and research in the tourism sector, and together with famous tourism projects including Shanghai Yuyuan, will appropriate more resources into developments in the tourism industry with its global vision for investment. Within a short period of just 3 years, Fosun has invested in a number of major projects, including Folli Follie (the Greece-based retail and duty-free stores for jewellery and accessories), China International Travel Service and Atlantis, Sanya Hainan. Adhering to its investment strategy, Fosun will remain upbeat on the consumption upgrade-related industries, and investments in project with enriched consumer experiences in particular.”