The group behind major luxury brands Louis Vuitton, Christian Dior, and Moët & Chandon champagne has agreed to purchase the world-renowned Belmond hotel chain for a massive $3.2bn (£2.5bn). The Executive Magazine catches up with Bernard Arnault, chairman and CEO of LVMH.
Moët Hennessy Louis Vuitton (LVMH) and Belmond Ltd— the part-owners or managers of 46 luxury hotel, restaurant, train, and river cruise properties— jointly announced the definitive agreement for the purchase.
The total deal includes LVMH acquiring Belmond for $25 per Class A share in cash, representing an equity value of $3.2bn. In the 12 months ending on 30 September 2018, Belmond recorded total revenues of $572m.
Belmond’s iconic properties include hotels such as the Hotel Cipriani in Venice, Hotel Splendido in Portofino, and Copacabana Palace in Rio de Janerio, amongst other world-famous stayovers. Not only this, but Belmond also runs legendary train services such as the Venice Simplon-Orient-Express, and beautiful cruises including the Belmond Afloat in France fleet.
Chairman of the board of directors at Belmond Ltd Roland Hernandez said following “deep interest” from a wide range of real estate and lodging companies, the board concluded this transaction provides an “exciting path forward with a group that appreciates Belmond’s irreplaceable assets.”
Roeland Vos, Belmond’s president and CEO, said: “Today’s announcement is the result of the strong execution of our strategic vision that builds on our pioneering legacy and is an exciting development for all stakeholders, including our employees.
“We are confident that, as part of LVMH’s world-class family of brands, Belmond’s ability to deliver timeless, one-of-a-kind luxury experiences will reach new levels.”
LVMH is represented in wines and spirits by a portfolio of bands that include Moët & Chandon, Dom Pérignon, and Hennessy. Its fashion and leather goods division includes Louis Vuitton, Fendi, Givenchy, and Berluti— whilst its watch and jewellery division consists of Bvlgari, TAG Heuer, and Hublot.
Bernard Arnault, chairman and CEO of LVMH said: “Belmond delivers unique experiences to discerning travellers and owns a number of exceptional assets in the most desirable destinations.
“Its heritage, its innovative services, its excellence in execution and its entrepreneurship resonates well with the values of the Group and is complementary to our own Cheval Blanc maisons and the Bvlgari hotels activities. This acquisition will significantly increase LVMH’s presence in the ultimate hospitality world.”