LVMH acquires Belmond’s hotels

LVMH, the world’s biggest luxury group, has returned to the acquisition trail, splashing out $3.2 billion on the London-based owner of the Hotel Cipriani in Venice and Orient Express trains. The purchase of Belmond boosts the hotel portfolio of LVMH, which already has Cheval Blanc hotels in Courchevel, the Maldives, Saint-Barthélemy and Paris and owns Bulgari Hotel and Resorts. Belmond operates in 24 countries and its hotels include the Copacabana Palace in Rio de Janeiro and Hotel Splendido in Portofino, Italy. It also owns train services such as the Venice Simplon-Orient-Express and Belmond Royal Scotsman. LVMH, which owns brands such as Christian Dior and Louis Vuitton, saw off interest from other potential bidders for the deal, including private equity groups… The acquisition highlights how big companies are seeking to tap into a rising trend of “experiential” luxury, with consumers buying fewer products and more experiences in areas such as food and wine, hotels and travel… The global luxury hotel market was worth at $83.1 billion in 2017 and is expected to grow at a compound annual rate of 4.3 per cent to reach $115.8 billion by 2025, according to Grand View Research, a consulting firm.

Harriet Agnew