LVMH’s $2.6 Billion Bet on High-End Experiences

For once, it wasn’t one of the usual suspects. Luxury conglomerate LVMH came out of left field to snaffle up Belmond in a deal valued at $2.6 billion.

So what does a company that mostly sells high-end luxury goods want with a hotels and trains operator? It all comes down to experiences.

LVMH is great at “things.” It has a portfolio that includes the likes of Fendi, Bulgari, and Hennessy, but it has recognized that today’s luxury consumer wants more than a particular handbag or watch.

As LVMH Chief Financial Officer Jean-Jacques Guiony explained after the announcement: “The future of luxury will be not only in luxury goods as it’s been for many, many years, but also in luxury experiences, and we want to be in both segments, which is as simple as that.”

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— Patrick Whyte, Europe Editor

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