LVMH buys Belmond for $3.2bn

LUXURY brands giant LVMH has made a big bet on hospitality after buying hotels group Belmond for $3.2bn (£2.55bn).

The acquisition boosts LVMH’S existing portfolio of hotels, which includes the Cheval Blanc chain in places such as St Barts and the Maldives, and Bulgari hotels.

Belmond, the company behind the Hotel Cipriani in Venice and the Orient Express train, runs 46 luxury hotels, restaurants and train and river cruise services in 24 countries, from Anguilla in the Caribbean to St Petersburg in Russia.

It owns the Copacabana Palace in Rio de Janeiro, the Royal Scotsman train service in the UK, a cruise line in France and safari camps in Botswana.

The company styles itself as a provider of “extraordinary experiences with curated activities and an understated personal service to a globally diverse, highly refined customer”.

The deal ends a fourmonth sales process for Belmond, which was said to have attracted interest from several other companies and private equity houses.

Belmond made sales of $572m in the year to September and adjusted profits of $140m. LVMH reported sales of €42.6bn (£38.3bn) last year, and made an €8.3bn profit.