PARIS -- Club Med's recent agreement to purchase the Crested Butte
Marriott Resort, a ski resort in Crested Butte, Colo., is just the
start of the French company's efforts to establish a larger
presence in the U.S. and North America.
Currently, the inclusives firm only has two properties in North
America, not including the planned acquisition. Another also is in
Colorado, at Copper Mountain, and there is a Florida property, in
Port St. Lucie.
The purchase price of the deal, expected to close in April, was
not disclosed.
Following renovations that will bring the property more in line
with Club Med's other ski villages, the Club Med Crested Butte is
projected to open in November.
As nearly 70% of its customers are European -- and more than
half of that group is French -- Club Med is looking to drive
business from other regions, especially North America. To attract
that business, Club Med is seeking to acquire more North American
villages.
"For a country as large as the U.S., three properties don't cut
it," said Yves Martin, executive vice president and acting chief
executive officer for the U.S. "We have to have coverage."
Martin said the firm would like another ski village, and
properties in locations such as Florida, Hawaii and Canada.
Acquiring a property isn't as easy as it might seem, as Club
Med's emphasis on sporting activities means a lot of space is
required. Yet the new Colorado village isn't the most expensive
recent project undertaken by Club Med.
Two years ago, the firm embarked on a $350 million renovation
program that will refinish 73 of the company's approximately 120
villages by the end of the year. The remaining properties didn't
need renovations, according to Martin.
The goal is to provide some of the creature comforts, such as
larger rooms and more customary hotel amenities, that were
previously lacking in Club Med villages.
"The product had aged, and you have to have a minimum level of
comfort," said Martin. He said the firm has to fight an image that
its properties are for "sea, sex and sun." The truth, he said, is
that 65% of Club Med's customers are families.
But the company has something for everyone, according to Martin,
and there are products and properties that target both families and
singles.
Seventy percent of Club Med's U.S. business comes from travel
agents, and so the company is stressing training programs designed
to help agents sell inclusive products.
Martin said Club Med is putting together a fam program, as well.
He also talked about some new products in development.
The first is Club Med World, which essentially will be
entertainment centers in large cities. The clubs will have sporting
facilities, restaurants and other leisure activities.
The first of these is expected to open in Paris this spring, and
another will open in Montreal in 2001.
In addition, Club Med also is getting into the licensing
business. Martin said the company's brand name will be appearing on
consumer products such as watches and leisure clothing.