Hokkaido Ski Resort Goes Up For Sale

Fosun International, the Chinese conglomerate, has announced plans to sell its Japanese ski resort, Hoshino Resorts Tomamu, for a substantial 40.8 billion yen ($252 million). This decision, revealed on earlier in the year, is part of Fosun's broader strategy to divest non-core assets in response to the ongoing slump in China's property market.The deal involves the sale of a 99.998% stake in Shinsetsu, a Tokyo-based Fosun subsidiary that owns Hoshino Resorts Tomamu as its primary asset. The buyer is YCH16, a limited liability company.Hoshino Resorts Tomamu, located on Japan's northern island of Hokkaido, is a comprehensive resort featuring ski slopes, hotel accommodations, and a pool. Fosun acquired the property in 2015 for 18.3 billion yen through its publicly traded subsidiary, Shanghai Yuyuan Tourist Mart.

Hoshino Tomamu mountain summit which is serviced by a gondola. Credit: Hoshino Tomamu Known for its stunning natural surroundings, the resort has been a popular destination for Chinese tourists and international travelers alike. In 2023, Shinsetsu reported total assets of 43.8 billion yen and a net profit of 611 million yen, underscoring the resort's financial health.This divestment comes as Fosun grapples with financial pressures stemming from the Chinese real estate market's decline, which was triggered by the collapse of Evergrande Group. Guo Guangchang, Fosun's co-founder, has signalled the company's intention to redirect resources towards consumer-oriented businesses.The sale of Hoshino Resorts Tomamu is not an isolated move. Earlier this year, Fosun reduced its stake in Banco Comercial Portugues, and in May, the group decided to sell German private bank Hauck Aufhauser Lampe to Dutch financial group ABN Amro. These actions collectively reflect Fosun's strategic pivot in the face of challenging market conditions.