Fosun Tourism & Culture Group includes a Chinese joint venture with tour operator Thomas Cook Group and a luxury hotel in Hainan province as well as Club Med, according to IFR, a Thomson Reuters publication.
Shanghai-based Fosun is considering spinning off the unit as early as next year and is likely to pick Hong Kong as the listing venue, according to the people. Two sources said the deal would raise at least $500 million, according to IFR.
Fosun declined to comment when contacted by Reuters.
Fosun, co-founded by Chinese billionaire Guo Guangchang, was in the vanguard of China's global dealmaking spree over the past few years, snapping up assets including a Portuguese insurer, and stakes in Greek jewellery retailer Folli Follie and Cirque du Soleil. It bought Club Med for $1 billion in 2015 after a protracted bid battle.
The float of Fosun's tourism unit is one of several expected from China's largest dealmakers as they rationalise portfolios and seek to boost their finances. Last week, fellow conglomerate HNA said it was considering listing Gategroup, the Swiss airline caterer, in Zurich next year and signalled it was looking at other asset sales.
Fosun itself announced plans last year to list Ironshore, its reinsurance unit, but was stalled by a U.S. review of its two-stage acquisition of the Bermuda-based group. It sold the company to U.S. insurer Liberty Mutual for $3 billion last December.
In September, it listed Israeli subsidiary Sisram Medical in Hong Kong through a HK$ 977 million (£93.5 million) IPO. Sisram is a producer of medical aesthetics devices.
Fosun divides its businesses into "Health", or pharmaceutical and medical-related, "Wealth" for its financial operations, and "Happiness" for its tourism, leisure and consumer units. In the first half of this year, the Happiness unit reported profits of 516 million yuan (£58.3 million) from sales of 6.53 billion yuan.
Fosun shares were trading at HK$15.78 on Thursday afternoon, giving the company a market capitalisation of HK$135 billion.
(Reporting by Jennifer Hughes; Editing by Muralikumar Anantharaman)