Fosun International is making a bold bid to securitise one of China's most recognisable resort properties, filing for a Shanghai stock exchange listing of a real estate investment trust backed by its flagship Atlantis Sanya resort in Hainan province. If approved, the listing would mark one of the first hotel-backed REITs in mainland China's nascent trust market.
A Landmark Filing for China's REIT Market
The Hong Kong-listed conglomerate disclosed in a filing that it has submitted application materials to both the China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange for the proposed REIT listing. The closed-end trust would be underpinned by the 1,314-key Atlantis Sanya resort, located in Haitang Bay on the southern tip of Hainan Island.
China's REIT regime has expanded rapidly since its inception but has primarily focused on infrastructure and logistics assets. Regulators only opened the framework to commercial property assets, including hospitality, late last year, making Fosun's application a significant test case for the sector's evolution.
"The proposed spin-off is conditional upon, among other things, the approval by the CSRC and the SSE of the proposed listing," Fosun said in its statement, adding that further announcements would follow as the process advances.
Atlantis Sanya: A RMB 10 Billion Trophy Asset
Atlantis Sanya represents one of the most ambitious tourism developments in Chinese history. Fosun committed approximately RMB 10 billion (US$1.5 billion) to develop the integrated resort, which opened in 2018 as China's first Atlantis-branded property under a partnership with South African operator Kerzner International. The sprawling complex features a hotel, water park, aquarium, and extensive dining and retail facilities.
The resort has demonstrated strong operational performance in recent years. After suffering through China's extended COVID lockdowns, operating business volume surged 90.9 percent in 2023 to RMB 1.7 billion. While volume eased slightly to RMB 1.5 billion in 2024, first-half 2025 figures showed RMB 760 million in revenue with an impressive average occupancy rate of 88.4 percent across 3.1 million visitor visits.
These operating metrics suggest the resort has stabilised at a level that could support attractive REIT distributions, particularly given its dominant position in Hainan's rapidly growing tourism market.
Capital Recycling to Shore Up Fosun's Balance Sheet
The REIT listing attempt comes as Fosun works to stabilise its financial position following a turbulent period. The Shanghai-based conglomerate reported revenue of RMB 192.1 billion for 2024 but posted a net loss of RMB 4.4 billion, driven largely by one-off impairments and asset write-downs. Though it returned to profitability in the first half of 2025 with net income of RMB 661 million, Fosun has warned of a wider full-year loss amid ongoing non-cash charges.
A successful REIT listing would allow Fosun to unlock significant capital from the Atlantis Sanya asset while retaining operational involvement, a strategy that has proven successful for other Asian developers seeking to recycle capital from stabilised properties into new growth opportunities.
Broader Implications for China's Property Market
The filing carries significance beyond Fosun's corporate strategy. If approved, it would establish a precedent for hospitality REITs in China, potentially opening the door for other hotel and resort operators to access the public trust market. This could provide much-needed liquidity and transparency to a sector that has traditionally relied on private capital and bank financing.
Fosun is simultaneously exploring additional capital markets options for its tourism portfolio. Reports indicate the group is considering a potential Hong Kong IPO of its Club Med unit, the French-founded resort operator it acquired in 2015 that now runs approximately 70 upscale resorts globally. Alternative listing venues including Paris and Amsterdam are also reportedly under consideration.
For investors watching China's evolving REIT market, the Atlantis Sanya filing represents a watershed moment that could reshape how hospitality assets are owned, financed, and traded across the mainland.
