LVMH  buys Orient Express trains  and hotels group deal for $2.53bn

 

LVMH, the world’s biggest luxury group, forked out £2.53bn ( $3.2bn) on the London-based owner of the Hotel Cipriani in Venice and Orient Express trains, by buying Belmond, which operates in 24 countries and its hotels include Copacabana Palace in Rio de Janeiro and Hotel Splendido in Portofino, Italy. . LVMH already has Cheval Blanc Hotels in Courchevel, the Maldives, Saint-Bartelemy and Paris and owns Bulgari Hotel and Resorts.

Belmond owns train services such as the Venice Simplon-Orient Express and Belmond Scotsman.

LVMH, which owns luxury brands such as Christian Dior and Louis Vuitton, beat other potential bidders for the deal including private equity  groups.

The acquisition signals  how big companies want to capitalise on the rising trend of “ experimental luxury, with consumers buying fewer products and more experiences in areas  such as hotels, hospitality, food and wine.

Bernard Arnault CEO of LVMH said the deal would “ bring us closer to our highly discerning customers”.

The global luxury hotel market was worth  £66bn ($83.1bn) in 2017 and is expected to grow  at a compound annual rate of 4.3 per cent  to reach   £92bn ($115.8bn)  by 2025.

Bernard Arnault (69) is Chairman and CEO of LVMH Moët Hennessy – Louis Vuitton, the world’s leading luxury products group, born in Roubaix, France.