Fosun Tourism lost nearly 900 million in the first half of the year, and the hotel occupancy rate in Sanya, Hainan reached 95% in August

The Paper reporter Tang Yingying

On the evening of August 25, Fosun Tourism and Culture Group (Fosun Tourism, 01992.HK) released the mid-term results for 2020 as of June 30 performance. Data show that Fosun Tourism’s revenue in the first half of this year was 4.528 billion yuan (RMB, the same below), a year-on-year decrease of 50%; the tourism operation revenue fell to 4.311 billion yuan, a year-on-year decrease of 44.1%. Adjusted EBITDA (interest, tax, depreciation and Profit before amortization) decreased by 76.3% to 472 million yuan, with a net loss of 898 million yuan.

In terms of revenue, the operating income of resorts and tourist destinations was 3.454 billion yuan, a year-on-year decrease of 42.4%; tourism-related property sales and construction service income was 376 million yuan, a year-on-year decrease of 78.74%; tourism and leisure services and solutions Program income was 698 million yuan, a year-on-year decrease of 46.26%. Fosun Tourism pointed out that the decrease in revenue from tourism-related property sales and construction services was due to adjustments in the operation and delivery cycle plans of construction services.

In terms of cash flow, as of June 30, 2020, Fosun Tourism held cash and cash equivalents of approximately 6.26 billion yuan, and unused bank loans were approximately 2.25 billion yuan.

Qian Jiannong, Chairman and CEO of Fosun Tourism, believes that after the epidemic, the tourism and leisure industry will see a new development normal, and the industry will see opportunities and crises at the same time. Fosun Tourism is optimistic about global leisure and vacation after the epidemic The industry’s growth prospects and market restructuring opportunities.

The occupancy rate of European resorts has reached 95%

In terms of resort business, in the first half of this year, affected by the new crown epidemic, all resorts and business operations of its Club Med (Club Med) were temporarily suspended. closure. The interim results report shows that as of June 30, Fosun Tourism operates 65 resorts in more than 40 countries and regions. Among them, 37 are in Europe, Africa and the Middle East (including a cruise ship), 12 are in the Americas, and 16 are in the Asia-Pacific region (including 7 in China).

Fosun Tourism pointed out that as the resort’s capacity fell by 50.9%, as of June 30, Club Med’s six-month revenue recorded 3.908 billion yuan, a decrease of 44.3% from the same period last year. Among them, the turnover in Europe, Africa, the Middle East, Americas and Asia-Pacific regions decreased by 45%, 32.1% and 56.4% respectively compared with the same period last year.

From the perspective of occupancy rate, Club Med’s occupancy rate from January to February this year reached 71.6%, and the occupancy rate from March to June was only 39.5%. As of June 30, Club Med's occupancy rate had reached 62%, a decrease of only 3.1 percentage points compared with the same period last year.

The announcement shows that in July this year, the occupancy rate of opened resorts around the world reached approximately 61%. As of August 15, 26 resorts were in operation, and the reopened resorts accounted for approximately 37% of the resort capacity during the same period last year. In the 15 days as of August 15, 2020, the reopened Chinese resorts have achieved an occupancy rate of 88%, and the opened European resorts have achieved an occupancy rate of 95%. Fosun Tourism expects to reopen most resorts before the end of 2020.

The turnover and occupancy rate of Atlantis Sanya since July have been higher than the same period last year

In terms of tourist destinations, as of June 30, Fosun Tourism Group’s The turnover of Atlantis in Sanya, Hainan reached 331 million yuan, a year-on-year decrease of 49.5%. Due to the sharp drop in tourist arrivals during the epidemic, Atlantis Sanya's room revenue and other operating income fell by 46.5% and 52.9% respectively. In the first half of this year, only 1.4 million tourists visited Atlantis Sanya, year-on-year. down 44%.

The report shows that in the three months ended March 31 this year, Atlantis Sanya’s revenue decreased by 64.1% compared with the same period last year. However, in the three months ended June 30, turnover has reached 75.1% of the same period last year. As of June 30, the occupancy rate of Atlantis Sanya in the three months has reached 61.3%, which is higher than the same period last year.

Since July, Atlantis Sanya’s turnover and occupancy rate have been higher than the same period last year.

Data show that in July 2020, Atlantis Sanya’s turnover recorded 148 million yuan, a year-on-year increase of 18%; the occupancy rate was 88.1%, higher than the 81.4% in the same period last year. In the first 15 days of August this year, the occupancy rate of Atlantis Sanya reached 95%.

More than 300 properties in Taicang Fuyou City have begun pre-sale

In terms of property income, as of June 30, Fosun Tourism delivered Atlantis Sanya Tang'an 20 units and confirmed revenue of 367 million yuan.

The "Foyou City" brand launched by Fosun Tourism in November last year has also begun pre-sales.

In July this year, Taicang Fuyou City has obtained a sales license for a construction area of ??approximately 100,000 square meters, of which 327 salable property units with a construction area of ??approximately 37,000 square meters have begun pre-sale. At the same time, Lijiang Foyou City has obtained a pre-sale license for holiday inns and accommodation units with a construction area of ??approximately 28,000 square meters, and Fosun Tourism plans to start pre-sale activities in the second half of 2020.

In terms of other income, Fosun Tourism launched an Internet open platform based on vacation lifestyle products by leveraging the acquired intellectual property assets of Thomas Cook. The platform started trial operation on July 6 and was officially launched on July 18, 2020. Between July 6 and July 31, the platform had 118,200 downloads, 104,000 registered users, and a transaction volume of approximately 33.24 million yuan.

It is worth mentioning that Fosun Tourism previously acquired the Casa Cook and Cook’s Club hotel brands from Thomas Cook during its bankruptcy liquidation to further expand its resort and hotel business globally.

The report shows that as of August 21, 2020, Fosun Tourism has signed franchise agreements for eight hotels in Europe, all of which are currently in operation. In addition, Fosun Tourism has also signed franchise agreements in China signed agreements for three new hotels. In the next three years, Fosun Tourism plans to further expand Casa Cook, Cook’s club and other derivative brands in China, other Asian countries and Europe. Including existing hotels, it will open no less than 25 new hotels.