LVMH is expanding its presence in the luxury hotel sector, which until now has been limited to luxury brands. Cheval Blanc - in Courchevel, Saint Tropez, Saint Barthélémy and the Maldives, and now Paris, in the former Samaritaine - as well as the six hotels developed by its jewellery brand Bulgari. A world leader in the luxury goods sector, the French group has announced the acquisition of Belmond, This acquisition will enable LVMH to achieve critical mass in the ultra high-end hotel market. The Belmond group, valued at US$3.2 billion, owns or manages 33 hotels, adding 3,100 rooms to LVMH's current portfolio.
The Belmond brand will now live and develop alongside the Cheval Blanc houses. "The acquisition of Belmond, which perfectly complements our Cheval Blanc houses and Bvlgari's hotel activities, will significantly strengthen LVMH's presence in the world of exceptional hotels.said Bernard Arnault, the group's CEO. Belmond offers a discerning clientele rare experiences based on iconic assets in some of the world's most exceptional locations."These include, the Cipriani in Venicethe Copacabana Palace in Rio de Janeiroand the Grand Hotel Europe in St Petersburg, as well as the exceptional cruise ships and legendary trains such as the Belmond Royal Scotsman or the Venice Simplon-Orient-Express.
The Belmond Group, formerly Orient Expresswas named after this exceptional train through a long-term licensing agreement with the SNCF, which ended in 2014 and was taken over last year by AccorHotels. Was the French hotelier also one of the potential buyers of Belmond, like LVMH? One thing is certain: LVMH was not alone in the race to take over Belmond - KSL Capital Partners, KKR, Blackstone, Hyatt and Hilton had all expressed an interest - as Roland Hernandez, Chairman of the Board of Belmond Ltd, explains: "Belmond is one of the world's leading hotel chains.Following the strategic review, which involved a large number of real estate and hotel companies, sovereign wealth funds and other financial institutions around the world, the Board of Directors concluded that the LVMH offer provides both a favourable valuation for shareholders and interesting development prospects within a Group that can draw on Belmond's assets and teams."
