07/03/2019

LVMH announces a £500 million hotel project in London redefining the customer experience

news-main-lvmh-announces-a-500-million-hotel-project-in-london-redefining-the-customer-experience.1551898459.jpg Photo credit: Cheval Blanc Courchevel

The development of this hotel supply represents both the future and a return to its roots: it was at the Plaza-Athénée hotel that Alain Chevalier and Henry Racamier, then heads of Moët Hennessy and Louis Vuitton respectively, announced the creation of LVMH in 1987.

LVMH is already active in the distribution of luxury products, and now the group wishes to take a new step forward by developing its hotel supply.

The luxury group has announced the construction of a new complex including a hotel, spa and shops in London's chic Bond Street district.

With an investment estimated at nearly half a billion pounds sterling, the customer experience project is expected to be completed in 2022.

Towards the creation of LVMH universes:

This London project is reminiscent of its French counterpart's. Sale of fashion and perfume products in its shops, wines and spirits in the catering areas, accommodations through its Cheval Blanc brand... Will La Samaritaine take advantage of this opportunity to make its entire collection of products  available? For a total investment estimated at 460 million euros, LVMH will ensure the potential distribution of its brands in the highly touristic 2nd arrondissement.

LVMH is thus taking a new step forward in the hotel industry with resort-like projects, thus mastering a large part of the customer experience.

Why is experience the new luxury?

Bernard Arnault, CEO of LVMH, justifies these developments by the changing desires of his customers:

"The future of luxury will not only be in luxury products, as has been the case for many years, but also in luxury experiences, and we want to be in both segments."

LVMH products create increasingly diverse experiences:

When entering the new British property, LVMH wants its customers to have new experiences. In London and Paris, the group's brands will thus express their identity in an orchestrated world.

While it began with Moët Hennessy beverages and the Louis Vuitton leather goods company, the group has expanded into new industries through acquisitions and developments.

In addition, its brands are developing their identity and know-how in profitable markets: Bulgari has entered the hotel business with Marriott, Rimowa (baggage manufacturers) has created electronic boarding passes integrated into the suitcase with Lufthansa and Sephora has developed cosmetic classes.

Accommodations: a fast growing supply:

Present in the hotel industry with the marketing of the Bulgari brand in 2001 (5 properties and 441 rooms in June 2018), its Cheval Blanc brand in 2006 (3 properties and 112 rooms in June 2018), LVMH boosted its offer by acquiring Belmond for over $2.6 billion at the end of 2018.

Following this acquisition, the French group operates more than 3,500 rooms, surpassing Hong Kong's The Peninsula Hotels and thus gaining  the opportunity to increase synergies between its various supplies.

 

 

Article source : https://bit.ly/2XHDizR

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