China’s Fosun Considers Selling Atlantis Sanya Luxury Resort
Exploring a Potential Sale
Fosun International is contemplating selling all or part of its renowned luxury resort, Atlantis, located in southern China. The move is aimed at reducing the conglomerate’s debt burden, according to sources familiar with the matter.
An Exquisite Destination
Set on the picturesque Hainan island, dubbed China’s equivalent of Hawaii, Atlantis Sanya sprawls across an area spanning 66 soccer fields. The opulent resort features a hotel with over 1,300 lavish guest rooms, some offering mesmerizing views of underwater marine wonders. Additionally, it houses a sprawling water park, an enchanting aquarium, and a bustling shopping precinct.
Seeking Potential Buyers
Fosun has reached out to prospective buyers and advisors, engaging in informal discussions in recent months regarding the sale of Atlantis Sanya. While the exact deal value remains undisclosed, Fosun previously disclosed an investment of 11 billion yuan ($1.5 billion) in the property.
Shifting Focus
This potential sale signifies Fosun’s strategy to alleviate its substantial debt load, estimated at around $30 billion as of mid-2021. Apart from Atlantis Sanya, Fosun Tourism Group owns other key assets like Club Med, with speculations rife about the conglomerate considering divestment from the luxury resort chain.
Targeting Potential Buyers
Fosun has set its sights on Chinese state-backed firms and affluent investors from the Middle East as likely buyers for Atlantis Sanya. The conglomerate remains open to selling the entire resort business or solely the prestigious hotel, depending on the offers.
Financial Landscape
Fosun Tourism Group, with a market capitalization of approximately HK$5.2 billion ($665 million), contributes substantially to Fosun International’s overall revenue, accounting for 9%. In addition to its tourism ventures, the conglomerate’s diversified portfolio includes interests in healthcare, financial services, and real estate.
Financial Insights
The currency exchange rates are provided for informational purposes, with $1 equivalent to 7.1993 yuan and 7.8252 Hong Kong dollars, respectively.
