Club Med Owner Fosun Tourism Says H1 Loss Shrunk; The Americas and France Rebounded, China Collapsed
Fosun Tourism Group, the tourism arm of Shanghai billionaire Guo Guangchang’s investment firm Fosun International, said its loss narrowed in the first six months of 2022 to 197 million yuan, or $29 million. , down from 2 billion yuan a year earlier, as travel picked up and the impact of Covid-19 eased in major global markets except China.
Revenue for the company, whose global ownership or partnerships include Club Med, Atlantis and Thomas Cook, more than doubled to 6.4 billion yuan from 2.8 billion yuan a year earlier, it said. Fosun Tourism said Monday after the close of trading on the Hong Kong Stock Exchange. Swap. (Click here for the full announcement.)
The total number of hotel reservations in the group’s establishments more than doubled to reach 597,000 compared to 264,000 in the first half of 2021, thanks in particular to the increase in stays in the Americas and France. By contract, business in the company’s struggling domestic market in China plunged to just 48,000 guests from 115,000 a year earlier. (See details here.) China’s “zero-Covid” policies and selective travel restrictions have hurt travel and hospitality businesses in the world’s second-largest economy; GDP growth was just 0.4% in the second quarter from a year earlier.
Fosun Tourism raised approximately HK$3.2 billion in an IPO on the Hong Kong Stock Exchange in late 2018. Shares closed at HK$11.20 on Monday; this compares to its IPO price of HK$15.60, but is 14% higher than a year ago.
Fosun International owns approximately 81% of Fosun Tourism. Guo, 54, is now worth $5.9 billion on the Forbes list of real-time billionaires. Shares of Forbes International closed at HK$5.94 on Monday and have lost nearly 37% of their value over the past year. Fosun International’s investments range from pharmaceuticals to mining, real estate, tourism and steel.
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