In a strategic move, LVMH, through its subsidiary Belmond, is to acquire the Castello di Urio, a sixteenth century palace in Carate Urio on Lake Como. This acquisition underlines the group's desire to expand its presence in the Italian luxury hotel market.
The historic residence boasts 180 metres of shoreline and a vast 1.9 hectare estate. Originally, it was a private noble residence surrounded by Italian gardens. The castle has seen centuries of history and aristocratic ownership.
The transaction, estimated at between €50 and €100 million, includes the purchase and complete renovation of the property. The transaction is expected to be completed by 2024, marking a significant new addition to LVMH's growing collection of luxury hotels.
With the successful acquisition of Belmond in 2018 for over $3 billion, LVMH has strengthened its position in the luxury hotel sector. Belmond, founded in 1976, now has a portfolio of around 50 properties worldwide, including nine luxury hotels in Italy such as the Cipriani in Venice, the Splendido in Portofino and the Simplon-Orient Express train in Venice.
LVMH's decision is in line with its strategic vision for Belmond and reflects the current trend for global luxury hotel groups to invest in prime Italian destinations. The competitive landscape in Italy's luxury hotel sector remains robust, with significant international interest and substantial investment seen throughout 2023.