Despite a surge in demand for premium all-inclusive holidays, Club Med investors have much to unpack as the resort operator prepares for a Hong Kong IPO. The Paris-based company, taken private by Fosun International for $1.2bn just last year, aims to upscale its offerings while expanding from 69 resorts to 85 by 2030. Tourists increasingly favor set-price, luxury all-inclusive packages, with surveys showing strong interest in premium offerings.

However, Club Med faces stiff competition and has barely grown revenue per available room under Fosun's control in three years. While Hyatt's recent $2.6bn acquisition of all-inclusive specialist Playa valued it at 9-10 times expected 2027 ebitda, Club Med's growth prospects remain uncertain. The company, claiming the largest global resort market share at 1.1%, will offer one of the few pure-play holiday stocks post-IPO.