Club Med Renews Portfolio With More Than $530 Million in Investments

In 2006 and 2007, Club Med and its partners have dedicated a total of $530 million to renovate and revamp the group's portfolio of offerings. Fiscal year 2006 saw Club Med close five 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; Club Med Ixtapa Pacific, Mexico; and Club Med Buzios, Brazil. Club Med's new business models adapt resort development and management structures to each property and region. Club Med Buzios will be the group's first model of condominium resort development with some 300 units sold to individual buyers. To further improve profitability without any capital outlays, Club Med will develop serviced residential villas adjacent to select resorts in collaboration with its partners. Several sites, notably in Guadeloupe and the Dominican Republic, are under study. In terms of future projects, Club Med is researching new development opportunities in Costa Rica, Belize, the Dominican Republic and Mexico. In addition, Club Med is closely monitoring the efforts of Nicaragua, Guatemala and Honduras to break into the tourism arena.