The French luxury group LVMH Moët Hennessy Louis Vuitton, announced today that it has reached an agreement to acquire Belmond, the operator of such iconic hotels as the Hotel Cipriani in Venice and the Copacabana Palace in Rio de Janeiro.
Best known for owning such legacy fashion and wine brands as Veuve Clicquot, Givenchy, and Fendi, LVMH will pay $25 per share of Belmond, for an equity value of $2.6 billion and an enterprise value, including debt, of roughly $3.2 billion, according to a joint statement released by both companies.
By acquiring Belmond, LVMH will greatly expand its presence in the luxury hospitality world. Known as Orient Express Hotels until 2014, Belmond operates 46 hotels, restaurants, trains, and river cruises in 24 countries around the world. The upcoming Belmond Cadogan Hotel is one of London’s most-anticipated openings of 2019.
Since the deal isn’t expected to be completed until the first half of 2019, it is unclear what, if anything, will change for Belmond’s properties, including the Cap Juluca resort in Anguilla, the Venice Simplon-Orient-Express train, and Belmond Afloat in France fleet. Stay tuned for more updates in this space as this deal progresses.
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