LVMH Moët Hennessy Louis Vuitton (LVMH) has acquired a significant stake in the France-based upscale boutique hospitality group Les Domaines de Fontenille.
The size of the investment remains undisclosed as both parties have maintained confidentiality regarding the extent of the acquired stake.
According to a report by Bloomberg, which cites an anonymous source familiar with the deal’s specifics, LVMH has secured approximately 20% ownership in the hotel group.
This figure, however, has not been officially confirmed due to the non-disclosure of the transaction’s valuation.
The fresh capital from this transaction is earmarked for the acquisition and refurbishment of new properties.
In a concurrent financial move, Les Domaines de Fontenille saw additional investment from Anaïs Ventures, a Geneva-based investment company that is associated with the prominent Firmenich family.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAn interview with Les Domaines de Fontenille co-founder Frederic Biousse revealed that after the transaction, LVMH will become the predominant shareholder within the hotel chain.
Since its inception in 2016, the hotel chain has established 12 properties across France, Italy, and Spain.
In their joint statement on LinkedIn, Les Domaines de Fontenille co-founders Frederic Biousse and Guillaume Foucher said: “Fontenille is the story of a life. The arrival of LVMH and Anaïs Ventures at our side is a key milestone because it testifies to the quality of the work accomplished in a short time to create a strong and unique brand.
“We look forward to continuing to invest in unique destinations that resemble us over the long term while continuing our work to upgrade our services.”
LVMH’s portfolio also includes Belmond, the chain behind The Cadogan Hotel in London, and the Venice Simplon Orient-Express train service.
Earlier this year, LVMH announced its collaboration with French hotel group Accor to expedite the development of the Orient Express rail service.