News outlets suggest that this deal represents an equity value of $2.6 billion and an enterprise value of $3.2 billion.
Reports suggest that LVMH will retain the Belmond brand, which has proved controversial as commentators have suggested it fails to convey the heritage of the group’s properties. The rebranding to Belmond also made it harder for luxury travel designers to pitch Belmond properties, and clients were not familiar with the brand, despite the group including iconic properties such as the Copacabana Palace in Rio de Janeiro, the Hotel Splendido in Portofino, Le Manoir aux Quat’Saisons in Oxfordshire, Hotel Cipriani in Venice, Grand Hotel Europe in St. Petersburg. The Belmond Hiram Bingham (Peru), Venice Simplon-Orient-Express (Europe), Belmond Royal Scotsman (Scotland) and the Eastern & Oriental Express (Asia) are also part of the Belmond group.
LVMH is no stranger to luxury hospitality – the luxury goods maker owns Bvlgari hotels, with properties in Shanghai, London, Beijing and Dubai amongst others. The business also owns Cheval Blanc ‘Maisons’ in Courchevel, St Barts & the Maldives.
Andrew Forbes is a Marketing Communications consultant.
Travel Marketing – Travel Editorial – Travel Design