LVMH Moët Hennessy Louis Vuitton (LVMH), the world’s leading luxury group and Belmond, owners, part-owners or managers of 46 luxury hotel, restaurant, train and river cruise properties, have announced that they have entered into a definitive agreement for LVMH to acquire Belmond.
LVMH Moët Hennessy Louis Vuitton has a massive portfolio of brands spanning wines and spirits, fashion, perfumes and comestics, watches and in retail stores. Among these are Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Louis Vuitton, Christian Dior Couture, Fendi, Parfums Christian Dior, Parfums Givenchy, Bulgari, TAG Heuer, Dior Watches, DFS and Sephora.
Established over 40 years ago, Belmond (known previously as Orient-Express Hotels until 2014) owns and operates a global collection of exceptional hotel and luxury travel adventures in some of the world’s most inspiring and enriching destinations. The company operates in 24 countries with its unique and distinctive portfolio of 46 hotel, rail and river cruise experiences.
Belmond’s iconic properties include hotels like Hotel Cipriani in Venice, Hotel Splendido in Portofino, Copacabana Palace in Rio de Janeiro, Le Manoir aux Quat’Saisons in Oxfordshire, Grand Hotel Europe in St. Petersburg, Maroma Resort & Spa in Mexico, Hotel das Cataratas in the Iguassu National Park in Brazil and Cap Juluca in Anguilla. Legendary trains such as the Venice Simplon-Orient-Express and Belmond Royal Scotsman, and exceptional cruises such as Belmond Afloat in France fleet and Belmond Road to Mandalay, complete a portfolio that offers extraordinary experiences with curated activities and an understated personal service to a globally diverse, highly refined customer.
Through the acquisition, LVMH will significantly increase its presence in the ultimate luxury hotel world.
Roland Hernandez, Chairman of the Board of Directors of Belmond Ltd, commented: “Following a strategic review that attracted broad and deep interest from a wide range of real estate and lodging companies, sovereign wealth institutions and other financial buyers around the world, the Board has concluded that this transaction with LVMH provides compelling and certain value for our shareholders as well as an exciting path forward with a group that appreciates Belmond’s irreplaceable assets and strong management team.”
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.”
Bernard Arnault, Chairman and CEO of LVMH, added: “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 Bulgari hotels’ activities. This acquisition will significantly increase LVMH’s presence in the ultimate hospitality world.”
The deal has an enterprise value of $3.2 billion. In the 12 months ended 30 September 2018, Belmond recorded total revenues of $572 million and adjusted EBITDA of $140 million.
The transaction is expected to complete in the first half of 2019 subject to the approval of Belmond’s shareholders and clearance by the relevant competition authorities.