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LVMH Inks $2.6 Billion Deal to Buy ‘21’ Club Operator Belmond

  • French luxury-goods maker offers 42 percent premium for shares
  • LVMH buys ‘21’ Club owner as questions rise on luxury demand
The Belmond Hotel Monasterio in Cuzco

The Belmond Hotel Monasterio in Cuzco

Photographer: VW Pics/Getty Images
Updated on

LVMH is betting $2.6 billion that consumers who spend $1,000 on a Louis Vuitton bag will splash out for a $2,000-a-night hotel on Italy’s Amalfi Coast.

The French luxury giant agreed to buy Belmond Ltd., owner of New York’s ‘21’ Club and high-end resorts around the world. The transaction is LVMH’s largest since taking full control of Christian Dior for more than $7 billion last year and pushes the company further into services amid rising concern about the sustainability of the Chinese demand that’s driven fashion industry growth.