Louis Vuitton, a world-renowned luxury brand, has recently surprised the industry by revealing plans to enter the hospitality sector and open its first-ever hotel on the prestigious Champs Elysées. This move follows a growing trend among luxury labels expanding their offerings beyond fashion, and it signifies Vuitton’s desire to further establish itself as a powerhouse in the industry.
The location chosen for the hotel, 103 Champs Elysées, was initially announced as the headquarters and new superstore for Dior, another brand under the LVMH umbrella. Currently adorned with large images of Dior, sources now suggest that Vuitton will take over the space, while Dior may move into Vuitton’s existing boutique at 101 Champs Elysées, showing a strategic shift within the group.
The change in plans reportedly came about after internal discussions, and it is believed that the appointment of Pietro Beccari as CEO of Vuitton earlier this year played a significant role. Beccari, who previously served as CEO of Dior, successfully oversaw the renovation of Dior’s historic flagship store on the nearby Avenue Montaigne. His experience and expertise in the luxury sector make him an essential figure in guiding Vuitton’s expansion into the hotel industry.
The decision to open a luxury five-star hotel on the iconic Champs Elysées has generated much excitement among real estate players in the neighborhood who anticipate the significant impact it will have. With LVMH paying an annual rent of around 60 million euros for the property, which is owned by the Qatari royal family, it underscores the value and potential of the location. The building itself boasts a total area of 22,000 square meters, making it the largest on the Champs Elysées, Europe’s most famous avenue.
News of this strategic change was first reported by the independent business website La Lettre A, which also hinted at an internal debate within the LVMH group. The article suggested that Bernard Arnault, the world’s wealthiest individual and head of LVMH, had shown interest in creating an impactful presence on the Champs Elysées. His son, Alexandre Arnault, and Tiffany’s CEO Anthony Ledru reportedly advocated for a superstore for the New York jeweler at 103, but ultimately, Beccari’s support for Vuitton prevailed.
Vuitton’s impressive sales of over €20 billion in 2022, under the leadership of CEO Michael Burke, demonstrate its financial capacity to invest in a top-tier hotel. The brand’s success and reputation have positioned it favorably to undertake such a venture. While CEO Burke had mentioned the possibility of opening a Vuitton hotel near the brand’s headquarters in the 1st arrondissement, the proximity to the LVMH hotel Cheval Blanc and the group’s advanced concept store Samaritaine made the Champs Elysées location more enticing.
LVMH’s existing presence in the hospitality sector further supports Vuitton’s foray into hotels. In addition to five Cheval Blanc hotels, the luxury conglomerate also owns 13 Bulgari hotels, with the most recent opening in Tokyo last month. Furthermore, LVMH acquired Belmond in 2018, a prestigious luxury hotel chain that includes renowned properties such as the Hotel Cipriani in Venice and the Copacabana Palace in Rio.
Although no construction permits have been requested yet for the proposed Vuitton hotel, Vinci, a major French construction company, is expected to handle the renovation. The building itself dates back to 1898 and has a rich history. It was originally established as a hotel and has undergone various transformations over the years, serving as a bank, being requisitioned during World War II, and later becoming the French headquarters of HSBC.
The opening date for the Vuitton hotel has not been announced, but plans for the renovation include the creation of an interior courtyard, modifications to the ground floor windows, and the addition of approximately a dozen super suites catering to the most affluent clientele. This venture by Louis Vuitton reinforces its position as a true powerhouse in the fashion and luxury industries, as it expands its offerings beyond fashion into an entirely new realm.
Useful Links:
– https://www.voguebusiness.com/companies/luxury-hotel-mania-sets-in-as-lvmh-opens-new-dior-flagship
– https://www.vanityfair.com/news/2022/03/louis-vuitton-hotel-in-paris-to-open-on-champs-elysees
