Business

La Residencia to be acquired by LVMH

La Residencia in Deya, soon to be under new ownership. | Archive

Majorca Daily Bulletin reporterPalma14/12/2018 18:32

LVMH Moët Hennessy • Louis Vuitton is to acquire Belmond, which runs La Residencia in Deya among other hotels as well as cruises and trains (Orient-Express). The value has been set at 2,800 million euros. For the year September 2017 to 2018, Belmond turned over 572 million dollars, while earnings before interest, tax, depreciation and amortisation were 140 million dollars.

The takeover is scheduled for the first half of next year, subject to shareholder and competition authorities' approvals.

Belmond is represented in 24 countries and has a network of 46 hotels, such as the Splendido in Portofino, the Copacabana in Rio de Janeiro and the Grand Hotel in St. Petersburg.

Roland Hernández, the CEO of LVMH, says that the company's offer represents favourable value for shareholders and "interesting development prospects".