Fosun Tourism announces 2023 annual results: business volume significantly surpasses the pre-pandemic performance, net profit achieves turnaround

Release time:2024-03-14 Content sourced from: Page View:

Results Highlights

•   Business Volume1 reached RMB18,125.1 million, with a year-on-year growth of 19%, surpassing the 28% recorded in 2019, while revenue increased by 24% year-on-year to RMB17,151.8 million

•   Profit attributable to equity holders turned around to RMB307.2 million

•   Club Med achieved a Business Volume of RMB15,122.5 million, representing a 19% year-on-year growth, while the adjusted EBITDA experienced a 47% increase

•   Atlantis Sanya’s Business Volume surged by 91% year-on-year to RMB1,674.9 million, with adjusted EBITDA up 158%, and an average Occupancy Rate of 82%

•   Taicang Alps Resort had its grand opening in the second half of 2023

(Hong Kong, 14 March 2024) – Fosun Tourism Group ("Fosun Tourism" or the "Group", Hong Kong Stock Exchange Stock Code: 1992), a world-leading leisure-focused integrated tourism group, is pleased to announce its annual results for the year ended 31 December 2023 (the “Year”). During the Year, benefiting from the relaxation of global travel restrictions and the effective implementation of the Group’s strategies, Fosun Tourism’s business segments maintained strong recovery momentum, with the Business Volume of tourism operations significantly surpassing the pre-pandemic performance and profit attributable to equity holders achieved a turnaround. 

During the Year, “Club Med and Others”, “Atlantis Sanya”, “Vacation Asset Management Center”2, and “Foryou Club and Other Services” (collectively referred to as “tourism operations”) recorded a Business Volume of RMB18,125.1 million, a year-on-year increase of 19%. The Group’s revenue increased to RMB17,151.8 million, a year-on-year increase of 24%. Adjusted EBITDA was RMB3,729.9 million, a year-on-year increase of 59%, while profit attributable to equity holders totaled RMB307.2 million, a significant year-on-year increase of 156%, turning from a loss to a profit.

Club Med's performance hits record high with development in price, capacity and optimized product mix

In 2023, Club Med recorded RMB15,122.5 million in business volume, an increase of 19% compared with the same period in 2022, and equivalent to 118% of Business Volume achieved for the same period in 2019. The adjusted EBITDA increased to RMB3,207.9 million from RMB2,187.6 million in 2022. In a context of strong inflation, Club Med continued move upmarket. During the Year, Club Med’s Average Daily Bed Rate was RMB1,681.2 (at a consistent exchange rate) – a respective increase of approximately 9% and 31% compared with 2022 and 2019. The global average Occupancy Rate by Room reached approximately 70%, 3.5 percentage points higher than 2022.

During the year, Club Med’s business activities in the Americas were strong, with Business Volume up 24% compared with the same period in 2022 and up 63% compared with the same period in 2019. The North America region benefitted from Canada becoming a strategic market after the successful opening of its first mountain Resort, Québec Charlevoix in late 2021, with its “halo effect” on the business. During 2023, Brazil became the second worldwide sales market in terms of Business Volume due to a solid momentum in domestic travel and mountain vacations in the Alps. 

Benefitting from Club Med’s new Resort Tignes, upgraded Exclusive Collection Val d’Isère and the renovated Resort Pragelato, the Business Volume of Club Med’s EMEA region stood at RMB9,125.4 million in 2023, increasing by 7% and 11% compared to that of 2022 and 2019 respectively. In Asia Pacific, benefitting from the strong recovery in China after the Pandemic, the Business Volume in 2023 increased by 97% as compared with 2022 and was at 102% of that in 2019.

In 2023, the global capacity of Club Med increased by 6% as compared to that of 2022 and recovered to 98% compared over that of 2019. During the Year, Club Med opened four new premium Resorts, namely, Club Med Urban Oasis Nanjing Xianlin Resort and Taicang Resort in China, a unique product created specifically for Chinese urban family vacation; Kiroro Grand Resort in Hokkaido, Japan; and La Rosière Exclusive Collection Suite Resort in France. In 2026, together with new openings and renovations (partially offset by closure of obsolete resorts), Club Med anticipates an increase in annual capacity of approximately 19% or above when compared with 2023.

Looking ahead, it is expected to witness a sustainable growth in bookings throughout 2024 as the demand for ski and summer holidays continues to gain momentum in all geographic regions. As of 2 March 2024, the accumulated bookings for the first half of 2024, expressed in Business Volume of Stays, Tours and Services at constant exchange rate, increasing by approximately 14% compared to that for the first half of 2023 as of 2 March 2023, and increasing by approximately 53% for the first half of 2022 as of 2 March 2022. As of 2 March 2024, Club Med’s cumulative bookings for the second half of 2024, expressed in Business Volume of Stays, Tours and Services at constant exchange rate, increased by approximately 5% compared with the cumulative bookings recorded on 2 March 2023 for the second half of 2023, and increased by approximately 30% compared with the cumulative bookings recorded on 2 March 2022 for the second half of 2022.

Henri Giscard d’Estaing, Co-CEO of Fosun Tourism Group, Global President of Club Med, said, “After returning to its pre-pandemic level as early as in 2022, Club Med reached more than RMB15.1 billion in Business Volume for the first time in its history. The significant improvement in adjusted EBITDA and operating margin demonstrate the success of Club Med's new business model, whose transformation started in 2004.

2024 will mark the successful finalization of the move upmarket of our resort portfolio. In its 74-year history, Club Med has never had such a desirable Resort’s portfolio, either new, recent, or renovated. With its new record bookings for first half 2024, Club Med is well on track to become the most desirable lifestyle tourism brand, offering a life changing experience to its employees and contributing to sustainable tourism.”

Strong recovery of various business segments in China, Atlantis Sanya achieves record-high business volume

In 2023, Atlantis Sanya presented a series of brand-new experiences for its guests through accommodation, F&B, MICE, attractions and entertainment. This propelled the Business Volume to reach a record high of RMB1,674.9 million, representing a 91% year-on-year increase. The Average Daily Rate per Room was RMB2,385.5 and the average Occupancy Rate was 82%, up 39 percentage points compared with last year. The number of visits totaled 6.08 million. In 2023, Atlantis Sanya’s profitability continued to improve, with adjusted EBITDA reaching RMB744.8 million, a year-on-year increase of 158%.

In the first two months of 2024, Atlantis Sanya continued to be a popular tourist destination, benefiting from the surge in demand during the New Year and the Chinese New Year holidays. Its Business Volume was RMB464.2 million, an increase of 17% over the same period in 2023. The Average Occupancy Rate was 95% and the Average Daily Rate per Room was RMB2,988.9.

As for the Vacation Asset Management Center, “Alps Snow Live” in Taicang Alps Resort, Club Med Urban Oasis Taicang Resort, and Alps Time, all have opened for business in the second half of 2023. Taicang Alps Resort is currently in the ramp-up period since its opening in November 2023. Driven by the growing demand for urban holidays and snow tourism, as well as the continued enhancement of resort operations, its performance has been steadily improving. Lijiang Club Med Resort continued its recovery momentum. The property recorded Business Volume of RMB107.8 million during the Year, a year-on-year increase of 21%, with approximately 192,000 visits, an increase of 10% over the last corresponding period.

In 2023, Foryou Club made strategic adjustments and shifted from transaction scale orientation to membership services, and experienced improvement under self-operated scenarios. The Club is also fully connected with Fosun Tourism Group’s offline scenarios to provide platform members with differentiated member holiday products. During the Year, Foryou Club recorded Business Volume of RMB354.7 million, an increase of 9% over the same period of 2022. As of 31 December 2023, the number of platform members exceeded 6.53 million, a year-on-year increase of 17%.

Xu Xiaoliang, Co-CEO of Fosun International and Chairman of Fosun Tourism Group, said, “Fosun Tourism has made a remarkable recovery in the past year as the pandemic has subsided. The Company’s business volume has significantly exceeded the pre-pandemic level, and its core business has reached a record high. This is not only attributable to our strong product matrix and global business layout, but also reflects our accurate understanding of family vacation consumption needs. Looking ahead to 2024, we will actively seize the opportunities brought about by the recovery of urban vacations, cross-border tourism, and ice and snow tourism, and expand into emerging customer markets around the world. At the same time, we will continue to innovate, improve our products and services, and enhance operational efficiency, with asset-light operation as the core. We will promote the sustainable development of the Company’s businesses and be committed to creating long-term returns for shareholders.

1. Business volume represents the aggregate sales of the Group’s Club Med and Others, Atlantis Sanya, Vacation Asset Management Center, Foryou Club and Other Services of the Group, regardless of whether the property is owned, leased or managed.

2. In 2023, the Group incorporated two major projects, Taicang and Lijiang, under the former “Foliday Town” brand into the “Vacation Asset Management Center” business segment.