LVMH, the renowned luxury conglomerate, recently made waves in the luxury industry with the successful finalization of its acquisition of Belmond, a prestigious luxury hotel chain, for a staggering $3.2 billion. This strategic move by LVMH further cements its position in the luxury hotel sector, broadening its already impressive portfolio to encompass the iconic Belmond properties.
Following the announcement of the acquisition in December 2018, LVMH officially completed the deal on April 12, with approval from all necessary regulatory bodies. The finalization of the transaction is scheduled for April 17, 2019, marking a significant milestone for both companies. This acquisition aligns with LVMH’s ongoing efforts to enhance its presence in the luxury hospitality segment, complementing its existing assets such as the upscale Cheval Blanc chain and Bulgari stores.
The agreement between LVMH and Belmond stipulated a payment of $25 per share in cash, offering a substantial premium of 41.6 percent above Belmond’s share prices. With operations in 24 countries, Belmond reported a revenue of $572 million for the twelve-month period ending in September 2018, with a substantial portion originating from its European endeavors. Employing around 8,000 individuals worldwide, Belmond prides itself on its luxurious accommodations and exceptional service.
Established in 1976 through the acquisition of the Cipriani hotel in Venice, Italy, Belmond has since expanded to own and manage a total of 33 hotels featuring 3,100 rooms. Notable properties under the Belmond umbrella include the Copacabana Palace in Rio de Janeiro, the Cataratas hotel in the Iguazu Falls national park in Brazil, and the Maroma Resort and Spa in Mexico. In addition, Belmond operates two river cruises and seven luxury trains, including the renowned Venice Simplon-Orient-Express, adding to its allure and prestige.
With the completion of this acquisition, LVMH solidifies its presence in the luxury hospitality industry, reinforcing its global standing in the luxurious market segment. The addition of Belmond’s distinguished properties to its collection reaffirms LVMH’s dominance in the luxury sector, setting the stage for further expansion and success in the industry.
For more information on LVMH and Belmond, you can visit their official websites: LVMH and Belmond.
