LVMH Moët Hennessy Louis Vuitton has agreed to purchase Belmond Ltd. for $25 per Class A share in cash. That deal will represent an equity value of $2.6 billion in a transaction with an enterprise value of $3.2 billion.
Belmond is owner, part-owner or manager for 46 luxury hotel, restaurant, train and river-cruise properties. Established over 40 years ago with the acquisition of Hotel Cipriani in Venice, the hospitality company operates in 24 countries. Belmond’s iconic properties include Hotel Splendido in Portofino, Copacabana Palace in Rio de Janeiro, Le Manoir aux Quat’Saisons in Oxfordshire, Grand Hotel Europe in St. Petersburg, Maroma Resort & Spa in Mexico, Hotel das Cataratas in the Iguassu National Park in Brazil and Cap Juluca in Anguilla. Trains such as the Venice Simplon-Orient-Express and Belmond Royal Scotsman and cruises such as Belmond Afloat in France fleet and Belmond Road to Mandalay round out the portfolio.
“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,” says Roland Hernandez, chairman of the board of directors at Belmond.
The transaction is expected to close in the first half of 2019 subject to the approval of Belmond’s shareholders and clearance by the relevant competition authorities.
Photo of Hotel Cipriani suite: Courtesy of Belmond