Hospitality News - Club Med Invests $530 Million and Announces 1st Condo Resort

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Club Med Invests $530 Million and Announces 1st Condo Resort

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Hospitality News - Development News
Written by Dr. Magoo
Thursday, 12 April 2007
Group Implements New Operating and Development Models In 2006 and 2007, Club Med dedicated a total of $530 million to renovate and revamp the group's portfolio of offerings. Fiscal year 2006 saw Club Med close five of its more rudimentary resorts and reinvest the windfall to upgrade seven others. Already these investments are bearing fruit with the recent openings of Club Med Cancun Yucatan, Mexico; Club Med Caravelle, Guadeloupe; Club Med La Plagne, French Alps; Club Med Opio in Provence, France; and soon Club Med Albion, Mauritius; and Club Med Ixtapa Pacific, Mexico. By December of 2008, Club Med will introduce a completely updated portfolio in conjunction with new business models that securely position Club Med in the upscale family market--an estimated 39 million potential customers in Europe and the United States alone. Club Med's new business models mirror current and latest resort development structures. They include the use of management contracts, long term leasing, and mixed-use developments. Club Med currently operates a total of six resorts via management contracts in Egypt, France, Turkey and Israel. Club Med Buzios, on the famed 'Brazilian St. Tropez' will be the group's first model of condominium resort development with some 300 units sold to individual buyers. In addition, Club Med, together with quality partners, will develop serviced residential villas adjacent to select resorts around the world. Club Med Albion, Mauritius will introduce the first such villas, while several other sites, notably in Guadeloupe and the Dominican Republic, are under study. In terms of future projects, the group is conducting sustained and systematic searches for new development opportunities in Costa Rica, Belize, the Dominican Republic and Mexico. In addition, Club Med closely monitors the efforts of Nicaragua, Guatemala and Honduras to break into the tourism arena. Did you enjoy this article? Please bookmark it onto:
Last Updated ( Monday, 23 April 2007 )