Chinese conglomerate Fosun International is exploring the sale of a minority stake in its luxury resort chain Club Med, aiming for a valuation of the entire business at $800m, Reuters reported.

The company has recently held informal discussions with advisers and possible buyers, though no official proposals have been made public, the report said.

The move is part of Fosun's broader strategy to divest non-core assets and address investor concerns regarding its debt levels.

The news follows a previous report by Bloomberg in November 2022, which suggested Fosun was gauging interest in Club Med at a full-business valuation of $1.5bn.

At that time, Fosun stated it had ‘no plans’ to sell the all-inclusive resort operator.

Fosun's recent activities include plans to sell a 5.6% stake in Banco Comercial Portugues for €235.19m ($256.07m) to strengthen its working capital.

Additionally, it is in advanced negotiations to offload its Thomas Cook package holiday brand to eSky, a Polish online travel agent.

Fosun acquired Thomas Cook for £11m ($13.87m) following its collapse in 2019.

Club Med, part of Fosun Tourism Group, is listed on the Hong Kong Stock Exchange. It operates the Atlantis luxury resort in Hainan, China, and has a market value of around $652m.

Fosun acquired the Paris-based Club Med in 2015, valuing it at €939m. Currently, Club Med operates nearly 70 resorts globally, with locations in the Maldives, Hokkaido, and Cancun.

The potential divestment comes as the global tourism industry anticipates a full recovery from the pandemic this year.

Last October, Club Med opened Club Med Urban Oasis Xianlin Nanjing Resort in China. It is claimed to be the world’s first urban oasis resort.

Located in the centre of Nanjing, the resort offers a 1,200m² indoor heated water park, an outdoor explore park, an outdoor water screen light show, sports activities and a U Bar.