Belmond, the owner of Le Manoir aux Quat’Saisons in Oxfordshire, has been sold to LVMH Moët Hennessy Louis Vuitton, a luxury French goods company, for just over £2bn ($2.6bn).
The portfolio of 46 hotel, restaurant, train and river cruise properties, which recorded total revenues of £454m ($572m) in the 12 months ended September 30, 2018, jointly announced the acquisition today.
The transaction is expected to be complete in the first half of 2019 subject to the approval of Belmond’s shareholders.
Established over 40 years ago with the acquisition of Hotel Cipriani in Venice, Belmond owns and operates a global collection of hotel and luxury travel ventures in 24 countries.
The company’s two UK hotels are Le Manoir aux Quat’Saisons in Oxfordshire and Belmond Cadogan, which is due to open in spring 2019 and will mark the brand’s first venture into London.
It was announced in August that Belmond was exploring a possible sale, as the board looked into ‘strategic alternatives to enhance shareholder value,’.
The company, which has owned Le Manoir since 2002, called on Goldman Sachs and JP Morgan as financial advisors and as well as Weil, Gotshal & Manges as legal advisors to then conduct a ‘robust review’ of the business.
LVMH comprises of portfolio of luxury brands such as Moët & Chandon and Dom Pérignon as part of its wines and spirits division and the likes of Louis Vitton, Marc Jacobs and Givenchy in its fashion and leather division.
Dior Watches, Bvlgari and TAG Heuer are just some of the brands in LVMH’s watches and jewellery division.
Roland Hernandez, chairman of the board of directors of Belmond Ltd, commented: “Following a strategic review that attracted broad and deep interest from a wide range of real estate and lodging companies, sovereign wealth institutions and other financial buyers around the world, the Board has concluded that this transaction with LVMH provides compelling and certain value for our shareholders as well as an exciting path forward with a group that appreciates Belmond’s irreplaceable assets and strong management team.”
Bernard Arnault, chairman and chief executive officer 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.”
