Luxury Grand Hibernian Operator Aquired by LVMH

The Leading Luxury Group Sees Value in Experiential Luxury

Ireland's luxury rail operator Belmond Grand Hibernian will become part of Moët Hennessy Louis Vuitton (LVMH), as the global luxury giant today agreed to acquire Grand Hibernian's owner Belmond for a consideration of $3.2bn including debt.

Belmond itself is a key player in the luxury vacation space – operating luxury hotels, trains and river cruises in 26 countries – and LVMH's decision to enter the 'experiential luxury' market with this acquisition is a powerful vote of confidence for the brand in an increasingly competitive yet also lucrative luxury market.

LVMH's participation in the luxury market to date has been focused on products rather than services, so to be their first acquisition in this space bodes well for the individual entities in the Belmond portfolio (which range from Ireland's Grand Hibernian to luxury river cruises and numerous exceptional hotels – not least of which is the iconic Belmond Hotel Cipriani in Venice ).

As part of LVMH's global luxury group – with 145,000 employees and some of the world's best known luxury brands – Belmond is likely to benefit from the countless synergies and cross-marketing opportunities which will arise from the deal.

Roeland Vos, Belmond's President and Chief Executive Officer, said: “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.”

Bernard Arnault, Chairman and Chief Executive Offer of LVMH, added: “Belmond delivers unique experiences to discerning travelers 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. This acquisition will significantly increase LVMH's presence in the ultimate hospitality world.”