France’s Club Med Eyes the Caribbean, Latin America for Major Expansion Bid

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 in Mexico, Club Med Caravelle in Guadeloupe, Club Med La Plagne in the French Alps, Club Med Opio in France’s Provence, the Club Med Albion in Mauritius, and Club Med Ixtapa Pacific in 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 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.