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WhatLVMH Moet Hennessy Louis Vuitton — a conglomerate that owns some of the world’s most luxurious retail and liquor brands — plans to acquire Belmond, owners of 46 luxury hotel, restaurant, train and river cruise products.
Why It MattersIt’s clear that today’s luxury consumer is less interested in acquiring fancy stuff and more interested in bragging rights, excellent service and one-of-a-kind experiences. LVMH’s acquisition of Belmond highlights this. The luxury behemoth is set to benefit from the loyalty of the Belmond customer — and the travel advisors who so excellently serve them.
Fast Facts- LVMH is to acquire Belmond for $25.00 per Class A share in cash. This represents an equity value of $2.6 billion in a transaction with an enterprise value of $3.2 billion. In the twelve months ended September 30, 2018, Belmond recorded total revenues of $572 million and adjusted EBITDA of $140 million.
- Belmond’s properties include Belmond Grand Hotel Europe, St. Petersburg; Belmond Copacabana Palace, Rio de Janeiro; Belmond Maroma Resort & Spa, Riviera Maya; and Belmond El Encanto, Santa Barbara. Trains include the Venice Simplon-Orient-Express and Belmond Royal Scotsman.
- LVMH owns a far-ranging portfolio of luxury goods such as includes Moet & Chandon, Dom Perignon, Louis Vuitton, Christian Dior Couture, Celine, Bvlgari and TAG Heuer, among others.
What They Are Saying“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,” said Roeland Vos, Belmond’s president and chief executive officer. “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.”
“Belmond delivers unique experiences to discerning travelers and owns a number of exceptional assets in the most desirable destinations,” said Bernard Arnault, chairman and chief executive officer of LVMH. “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.”