VELOCITY
TRENDING
CLUB MED ,
PART
DEUX
Contributed by JUDITH CROWN
Club Med is on an expansion tear following its 2015 acquisition by China ’ s Fosun Group . The Paris-based originator of the all-inclusive resort plans to open 15 properties and renovate nine over the next three years , with an emphasis on its parent company ’ s home turf .
“ Le Club ,” founded in 1950 , struggled for years amid heightened competition and the prolonged recession in Europe . In China , it will target the wealthiest 1 % — a robust pool of 14 million travelers .
With plans to add 10 resorts to its current base of five , the Asian giant will become the company ’ s No . 2 market behind France , says Xavier Mufraggi , CEO of Club Med North America . “ That ’ s a major shift ,” he says . “ Fosun is helping us identify ( investment ) partners based on their relationships .”
Unlike Europeans , who concentrate on a favorite sport such as golf or tennis , the Chinese demand a variety of activities . “ The Chinese make sure to test everything — they love to try new stuff ,” Mufraggi says . That premise will be put to the test in ski resorts . “ When we opened a ski resort in China ( there
Club Med Beidahu , in Jilin Province , is the brand ’ s second ski resort in China . The 176-room hotel opened in November . are two in the northeast ) people said , ‘ are you crazy ? Nobody knows how to ski in China ,’” Mufraggi recalls . “ Maybe they don ’ t ski all day , but they take lessons and will hit the slopes for three hours a day .”
Ski resorts ’ seasonality make them a risk , says Gregory Rumpel , Miami-based managing director of the Hotels & Hospitality Group at JLL . But he expects the novelty will appeal to affluent and status-conscious Chinese who want to try the next big thing . “ This strategy puts Club Med once again on the new frontier ,” he says .
The company ’ s challenge is to “ replace the former Club Med ‘ addicts ’ by new clients attracted by the upscale strategy ,” says Bruno Courtin , contributing editor at Paris-based consultancy Hospitality ON .
The company generated revenue of € 1.47 billion ( about US $ 1.56 billion ) last year . While China is a focal point , the other half of its upcoming US $ 1.5 billion expansion will be distributed among Europe , Africa and the Americas . In the Alps , where Club Med operates 20 ski resorts , three more will be added over the next three years , Mufraggi says .
The expansion will require a lot of capital , JLL ’ s Rumpel says . With the company ’ s track record in China , the support of the government and Fosun , there ’ s a lot of untapped potential , analysts say . “ Club Med has been doing this a long time ,” Rumpel adds . “ The brand has a lot of legs .”
VELOCITY
AccorHotels ’ brands , from Raffles to Mama Shelter to Ibis , cohabit with serviced homes ( Onefinestay ), funky hostels ( Jo & Joe ) and a concierge provider ( John Paul ). CEO Sebastien Bazin , who is redefining the traditional hotel company , is up for re-election by the board in May . Is he redefining himself out of a job ?
“ The honest answer is the minute my ego surpasses my thinking , they have to get rid of me , seriously . So , you can go in many directions , as long as it is properly thought out , as long as there is reasoning behind it , as long as you have priced and measured the risk associated with failing . So , if all of it is still there and the process has been challenged by the current executive committee , challenged by the board , where you basically are held accountable for mistakes you ’ ve made foolishly , then probably I should stay . The minute I go too fast , I don ’ t spend the time on that proper measurement , that means my ego is driving me , and then I need to go … A lot of people are saying Accor is going too fast . And I ’ m insisting , being provocative , no , we ’ re not going fast enough .”
12 hotelsmag . com May 2017