Published on : Saturday, December 15, 2018
Belmond is the owner of hotels including Venice’s landmark Cipriani. The purchase will help LVMH to penetrate deeper into the luxury hospitality market.
LVMH owns hotels including Bvgalri hotels, and the Cheval Blanc in the Courchevel ski resort in the French Alps. LVMH is associated with Louis Vuitton and Christian Dior fashion brands.
The Belmond purchase will help LVMH to own hotel within the Machu Picchu citadel in southern Peru, Hotel Splendido in Portofino on the Italian riviera and the Copacabana Palace in Rio de Janeiro. With this acquisition LVMH will propel into high-end travel and hospitality sector.
Though the acquisition appears to be outside its core business, it will help LVMH to provide full spectrum of luxury experience in the long run.
LVMH would pay U.S. dollar 25 per Belmond share, a 40 per cent premium to Thursday’s closing price.
The deal is expected to close in the first half of 2019. Including the debt component, Belmond’s equity is valued at U.S. dollar 3.2 billion.
Belmond has 46 luxury hotels, restaurants and train and river-cruise properties located in exotic and distinctive destinations worldwide under its umbrella.