Luxury Conglomerate LVMH Acquires St. Barth Hotel Isle de France
August 12, 2013
LVMH Moët Hennessy-Louis Vuitton SA, the world’s largest luxury conglomerate has now added another acquisition to its range of business with the latest purchase of Hotel Saint-Barth Isle de France from majority owner Adventurous Journeys Capital Partners for an amount that has not been disclosed.
LVMH’s acquisition of this hotel property in St. Barth, a French West Indies island, is incidentally a very popular vacation spot for the rich and famous- hence, this acquisition was but a natural move as the conglomerate is said to expand its luxury operations in other fields as well.
LVMH derives 35 per cent of its revenue which accounts for €28.1 billion (approximately $37 billion USD) out of the fashion and leather goods division of the company. However, of late, LVMH has increased its expansions into various arenas and the most recent transactions, apart from the Hotel Isle de France, is the purchase of Loro Piana, the fine wool retailer, for which the company paid $2.66 billion as well as the acquisition of Pasticceria Confetteria Cova Srl, the high-end pastry maker that was purchased for an undisclosed sum.
Looking at the line of acquisitions, it can be observed that LVMH has tried to vary its portfolio over the years by acquiring premier labels such as watchmaker TAG Heuer, Dom Perignon and Moet & Chandon Champagne labels and Bulgari, the exquisite jeweler.
As far as Hotel Saint-Barth Isle de France is concerned, this 39-room hotel would be operated by the LVMH Hotel Management division of the company. Apart from Hotel Saint-Barth Isle de France, the hotel division also has other exquisite hotels in its portfolio such as the White 1921 hotel in Sait Tropez on the French Riviera, Cheval Blanc in Courchevel and the Maisons Cheval Blanc which is currently underway in the Maldives.
LVMH will also be opening another hotel – Cheval Blanc Samaritaine- in Paris which would be housed in the 1933 Art Deco Building of La Samaritaine, the historical Parisian store.
This exquisite Hotel Isle de France is located on Flamands Beach, also includes the Las Case d’Isle restaurant and the Isle de France Spa, which are also extensions of the hotel property. The hotel is at a proximate distance to Gustavia, the main town of the island. As per the hotel’s website, the tariff for a one night stay at the hotel could cost a few thousand Euros per night! Given the luxurious offerings of the hotel, it is poised to be a major tourist destination for the wealthy few!