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LVMH is betting on a small however high-end French lodge group with properties in vacationer scorching spots like Tuscany and Minorca for its newest enlargement on the earth of luxurious journey.
LVMH Moët Hennessy Louis Vuitton SE has purchased a stake of about 20 p.c in Les Domaines de Fontenille, in accordance with an individual accustomed to the transaction who declined to supply the entity’s worth. Whereas LVMH and Les Domaines de Fontenille introduced the funding in an announcement, they declined to touch upon the stake measurement. Anaïs Ventures SA, the Geneva-based funding firm of the Firmenich household, additionally took a minority stake within the enterprise, in accordance with the assertion.
After the deal, LVMH would be the largest shareholder within the lodge chain, Frederic Biousse, one in every of Les Domaines de Fontenille’s two co-founders, stated in an interview on Tuesday. The lodge chain, based in 2016 by Biousse and Guillaume Foucher, has 12 properties in France, Italy and Spain.
The acquisition displays LVMH’s rising curiosity within the so-called experiential luxurious area, offering it with a method to diversify from the high-end items sector that has been hit arduous by falling demand — particularly in China. Shoppers have been much less keen to purchase the group’s dear Louis Vuitton purses and Christian Dior jackets. LVMH shares are on monitor for his or her worst yearly efficiency since 2008.
The conglomerate already owns Belmond, the chain behind The Cadogan lodge in London and the luxurious prepare service Venice Simplon Orient-Categorical. The Cheval Blanc lodge chain can also be a part of the group that’s managed by Bernard Arnault, Europe’s richest man.
Les Domaines de Fontenille attracts a younger and constant clientele that’s keen to spend between €400 ($422) and €1,000 an evening through the excessive season, chief government officer Linda Hazi stated.
Biousse stated his group is searching for to stay in that worth vary, even after France’s most unique accommodations referred to as “palaces” raised their per-night charges up to now 4 years to €1,500 or extra.
Les Domaines de Fontenille usually targets properties with a powerful heritage such because the one in Provence, which boasts 40 hectares of natural vineyards, or the previous chateau of actress Catherine Deneuve, referred to as Domaine de Primard, lower than an hour’s drive from Paris.
The brand new funding will allow the group to broaden in Italy and Spain, Hazi stated, including that it could do some syndication offers with different companions when shopping for distinctive properties, significantly in Italy.
In contrast to many hospitality teams that handle however don’t personal the properties, Les Domaines de Fontenille seeks usually to be the owner as nicely, Biousse stated. The brand new money can even assist goal greater properties, Hazi stated.
Earlier this 12 months, LVMH additionally introduced a partnership with French lodge chain Accor SA to speed up the event of the Orient Categorical, the prepare service romanticised by motion pictures like “Homicide on the Orient Categorical.”
By Angelina Rascouet
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