Paris-based LVMH to acquire luxury hotel group Belmond for $3.2 billion
At $3.2 billion, this is LVMH's largest purchase since it spent $4.8 billion to buy Bvlgari in 2011
LVMH Moët Hennessy Louis Vuitton is all set to acquire London-based luxury hotel brand Belmond Group for $3.2 billion.
Belmond Group, the erstwhile Orient Express Hotels that changed its name in 2014, has 46 luxury hotels, restaurants, trains and river cruises in its portfolio.
The Wall Street Journal reported that in the running for Belmond were Middle Eastern and Asian government funds, big hotel brands and private-equity firms over the past few weeks. In 2013, Belmond refused a $1.2 billion bid for the company from the Tata Group of India.
In a statement, Belmond president and CEO Roeland Vos noted, “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.”
In a statement released by LVMH, CEO Bernard Arnault said: “Belmond delivers unique experiences to discerning travelers 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.”
At $3.2 billion, this is LVMH’s largest purchase since it spent $4.8 billion to buy Bvlgari in 2011 and $7.3 billion in 2017 for full control of Christian Dior.