Second Club Med Resort in China

Regulatory News:

Club Méditerranée (Paris:CU) has signed an agreement with China’s ChinaPaoShan Group that calls for the pre-opening of a second Club Med Resort in China in Guilin, Guanxi Province, in August 2012.

Currently a Relais & Châteaux site, the second Club Med Resort in China will open in pre-launch mode for the summer 2012 season. In 2013, it will be fully aligned with Club Med standards for full-year operation as from 2014. Club Méditerranée will operate and market the Resort through a ten-year management contract with site owner ChinaPaoShan.

Guilin attracted more than 20 million Chinese tourists and 1.4 million international visitors in 2010. Located in Guanxi province in southern China, Guilin is one of the country’s prime tourist destinations, renowned for its unique scenery. Guilin is also ideally situated for easy access. The city's international airport is 45 minutes from the Club Med Resort and an hour's flight from Hong Kong and Guangzhou.

The future 4-Trident Resort, catering in particular to families, will open with 162 rooms split in a main building of 116 rooms and a "château” with 46 rooms, most of them suites. A program to expand the Resort to more than 300 rooms is planned for the summer of 2013.

The Resort will have two swimming pools, a fitness room and a spa. Yoga, tai chi, mountain biking and numerous excursions will be offered in one of China’s most breathtaking natural areas. Childcare will be provided for children from 2 years, with a Petit Club Med and a Mini Club Med. The Resort will also feature a conference center for business clients.

In line with Club Med’s goal of becoming the leading provider of upmarket, all-inclusive vacations for Chinese customers, three other resort projects at seaside or cultural destinations have already been identified or are in the planning stage.

Club Med has decided to strengthen its presence in upscale resorts in China by opening five locations between now and 2015. The objective for 2015 is to attract 5% to 10% of China’s potential 4 and 5-star resort customers, whose numbers are expected to quadruple over the next four years. On the basis of this outlook, Club Med could attract 200,000 Chinese clients in 2015 and China could become Club Med's second largest market worldwide in terms of client numbers.