Luxury shopping, luxury travel. It’s a tom-ay-to tom-ah-to effect. It’s the same this, packaged differently. LVMH, owner of the luxury brand Louis Vuitton and Christian Dior, decided to build a bridge between this gap by acquiring upmarket luxury hotel group, Belmond for $3.2 billion. With this move, the brand hopes to “reach critical mass in the ultimate luxury hotel world with one single acquisition,” according to the company’s chief of finance. Luxury holidaymakers are no strangers to both brands. Belmond, has in its umbrella, either through ownership (fully or partially) or management, 46 luxury properties, operating in some 24 countries.
This collaboration is receiving plenty of nods from analysts who believe that it is a strategic and smart move. With the high net worth individuals growing on a global stage, this “transaction makes sense,” according to Thomas Chauvet, a top researcher from Citi. This observation tallies with market research firm Euromonitor who released findings saying global spending on the experience economy is expected to reach $8.2 trillion by 2028. While the numbers excite analysts, this may have little value of interest for the millennial rich spenders who are anyway going at it full swing, rising shares or not.