Deals

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
Photographer: VW Pics/Getty Images

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By Robert Williams and Jeff Sutherland

December 14, 2018 at 7:24 AM UTC

Updated on

December 14, 2018 at 9:08 AM UTC

This article is for subscribers only.

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.