TORONTO — Belmond Ltd., which comprises some of the world’s most prestigious hotels, has just been sold to LVMH Moët Hennessy Louis Vuitton.
The French luxury goods company acquired Belmond for US$2.6 billion, or $25.00 per Class A share in cash. The transaction is expected to be completed in the first half of 2019, subject to the approval of Belmond’s shareholders and clearance by the relevant competition authorities.
Established over 40 years ago with the acquisition of Hotel Cipriani in Venice, Belmond currently owns and operates a global collection of 46 hotel, rail and river cruise experiences in 24 countries. Some of its iconic properties include Cap Juluca in Anguilla, Hotel Splendido in Portofino, Copacabana Palace in Rio de Janeiro, and Maroma Resort & Spa in Mexico. Its legendary trains include the likes of the Belmond Royal Scotsman and the Venice Simplon-Orient-Express.
Through this acquisition, LVMH will significantly increase its presence in the ultimate luxury hotel market.
On what Belmond will bring to the LVMH brand, Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said: “Belmond delivers unique experiences to discerning travellers 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.”
Roeland Vos, Belmond’s President and Chief Executive Officer, added: “Today’s announcement is the result of the strong execution of our strategic vision that builds on our 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.”
In the 12 months ended Sept. 30, 2018, Belmond recorded total revenues of $572 million and adjusted EBITDA of $140 million.