LVMH would acquire luxury hotel operator Belmond through a $2.6 billion deal, or $25 per share, representing a 42% premium over Thursday's closing price.
Belmond, which ranked 25th among luxury hotel brands, is reportedly on the way to being acquired by LVMH. After a $2.6 billion deal, Belmond's shareholders and the competition authorities still have to approve the transaction for the British group to join LVMH's portfolio of hotel brands.
The latter owns Bulgari Hotels and Resorts - operated with Marriott International - as well as Cheval Blanc, respectively 52nd and 53rd luxury hotel brands in terms of rooms. In the event that the purchase transaction is completed, this new portfolio would constitute - according to Hospitality ON data of 1 June 2018 - the 21st largest hotel group in terms of rooms operated in the luxury segment. With 3,554 rooms, the French group would surpass the Hong Kong-based Peninsula Hotels operating 2,884 rooms, in a ranking dominated by the American Marriott International operating a less exclusive high-end portfolio with nearly 300,000 rooms.
Discover the complete ranking of luxury hotel brands
"The acquisition of Belmond, which perfectly complements our Cheval Blanc houses and Bulgari's hotel activities, will significantly strengthen LVMH group's presence in the world of exceptional hotels," commented Bernard Arnault, CEO of LVMH.
Other companies had expressed interest in Belmond such as Blackstone and Hilton Worldwide. Discover the complete list of contenders: Blackstone, Hilton, Hyatt... Multiple potential buyers to take over Belmond Hotels
Already signed up? Already signed up? Already signed up? Already registered? Login here!