Club Med operator Fosun Tourism reported a fourfold increase in revenue from its resort operations in the first quarter despite a resurgence of the Covid-19 Omicron variant. Revenue from the company’s core resorts and tourist destinations business quadrupled to 4.2 billion yuan ($655 million) in the first three months of the year from 1 billion yuan in the year-ago period.
The Club Med brand was the superstar for the period, posting a global average occupancy rate of 62.1% – up a full 25 percentage points from the year-ago quarter, though still down 8.4 percentage points from pre-pandemic levels in 2019.
The company is expected to return to profitability this year, with valuations that look competitive with other major global tourism stocks.
Despite the question marks hanging over its China business, Fosun Tourism does look well-positioned to rebound this year due to its highly international portfolio.
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