The world’s leading luxury group, LVMH Moet Hennessy Louis Vuitton has agreed to acquire Belmond, a hotel and leisure company that operates luxury hotels, train services, and river cruises around the world, in a $3.2-billion deal.
According to a joint statement, LVMH will acquire Belmond for $25 per Class A share in cash. The deal represents an equity value of $2.6 billion in transaction with an enterprise value of $3.2 billion.
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.
Through this acquisition, LVMH said it will significantly increase its presence in the ultimate luxury hotel world. Synonymous with history, heritage, timeless experiences, Belmond has a seasoned management team and is an ideal complement to the Cheval Blanc maisons, renowned for their exceptional service, architecture, and unique gastronomy.
“Belmond delivers unique experiences to discerning travelers 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 Bvlgari hotels activities. This acquisition will significantly increase LVMH’s presence in the ultimate hospitality world,” said Bernard Arnault, Chairman and Chief Executive Offer of LVMH.
For his part, Roeland Vos, Belmond’s President and Chief Executive Officer, said the announcement is the result of the strong execution of Belmond’s strategic vision that builds on its 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,” he said.
Belmond is a global collection of hotel and luxury travel adventures in some of the world’s most inspiring and enriching destinations. Established over 40 years ago with the acquisition of Belmond Hotel Cipriani in Venice, its unique and distinctive portfolio now embraces 46 hotel, rail and river cruise experiences, excluding one scheduled for a 2019 opening in London, in many of the world’s most celebrated destinations.
From city landmarks to intimate resorts, the collection includes Belmond Grand Hotel Europe, St. Petersburg; Belmond Copacabana Palace, Rio de Janeiro; Belmond Maroma Resort & Spa, Riviera Maya; and Belmond El Encanto, Santa Barbara. Belmond also encompasses safaris, seven luxury tourist trains, including the Venice Simplon-Orient-Express, and two river cruises. Belmond also operates ‘21’ Club, one of New York’s most storied restaurants. – LuxuryNewsAsia.com