Louis Vuitton is making more than just handbags — the luxury designer has decided to get into the hotel business with the acquisition of hospitality company Belmond Ltd.
Belmond, formerly known as Orient Express Hotels, owns or partially owns 46 luxury hotels, restaurants, trains, and river cruises, including the Hotel Cipriani in Venice, Italy. The company has remained a boutique-style brand throughout their 40-year history.
Moët Hennessy Louis Vuitton (LVMH) owns plenty of other luxury brands, including the wine label Dom Pérignon and champagne Moët & Chandon. LVMH also owns the Cheval Blanc luxury hotel at the Courchevel ski resort in France, as well as a number of other hotels under the same name.
LVMH and Belmond have entered into a definitive agreement for LVMH to acquire Belmond, for $25 per Class A share in cash, or an equity value of $2.6 billion in a transaction with an enterprise value of $3.2 billion.