Louis Vuitton moves into hotel business

Louis Vuitton Moët Hennessy (LVMH), the luxury goods company, is entering the luxury hotel market.

Louis Vuitton Eva Hezigova Advert
Louis Vuitton Eva Hezigova Advert

The hotels will be branded Maisons Cheval Blanc, after the French ski resort opened by Group Arnault, which is owned by Bernard Arnault, LVMH’s executive chairman.

Initially the luxury brand will partner with Egypt’s Orascom Development Holdings to build two resorts in the Middle East.

Both resorts will open in 2012.

LVMH has created LVMH Hotel Management to oversee the luxury group’s activities in the luxury hotel sector and will control the concept, brand, and day-to-day operation of the resorts.

It says the sector is a “natural extension” of the LVMH brand.

LVMH says the extension into luxury hotels is in response to high demand from its clients and will “enable the LVMH group to maximise the value of its brands” and take advantage of “numerous synergies and to capitalise on the long term growth of the high-end luxury hotel industry.”

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