PARIS AND LONDON — Luxury group LVMH Moët Hennessy Louis Vuitton has inked a deal to acquire Belmond Ltd. (NYSE: BEL), the owner or manager of 46 luxury hotel, restaurant, train and river cruise properties across the world, including three hotels in the U.S.
LVMH will acquire Belmond for $25 per Class A share in cash, which represents an equity value of $2.6 billion and an enterprise value of $3.2 billion.
Belmond currently operates properties in 24 countries, including the Hotel Cipriani in Venice, the Hotel Splendido in Portofino, the Copacabana Palace in Rio de Janeiro, Le Manoir aux Quat’Saisons in Oxfordshire, Grand Hotel Europe in St. Petersburg, Maroma Resort & Spa in Mexico and Cap Juluca in Anguilla. Its United States portfolio includes El Encanto in Santa Barbara, Calif.; Inn at Perry Cabin in St. Michaels, Md.; and Charlston Place in Charleston, S.C.
LVMH, which is owned by France’s richest man, Bernard Arnault, currently owns three properties in the ski resort of Courchevel, the Maldives and St. Barth’s as well as a group of Bvlgari hotels in Shanghai, Milan, Bali, London, Beijing and Dubai.
“Belmond delivers unique experiences to discerning travelers and owns a number of exceptional assets in the most desirable destinations,” says Arnault. “This acquisition will significantly increase LVMH’s presence in the ultimate hospitality world.”
LVMH was founded in 1987 under the merger of fashion house Louis Vuitton with spirits company Moet Hennessy. The company controls around 60 subsidiaries, with Christian Dior being its main holding company.
In March, the company made news when it purchased a 6,200-square-foot retail building on Rodeo Drive in Beverly Hills, Calif., for $110 million. Just one day earlier, Palm Beach, Fla.-based Sterling Organization purchased the same asset for $55 million. LVMH also previously held the Southern California record for acquisition price per square foot when, in 2013, the company purchased a 7,100‑square-foot building on Rodeo Drive for $85 million, or $11,971 per square foot.
Belmond’s stock price closed at $17.65 per share before the sale was announced, skyrocketing to $24.66 the following day. The stock price closed at $12.35 per share one year ago.
— David Cohen