LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury goods group, announces the creation of “LVMH Hotel Management” to oversee the group’s activities in the luxury hotel sector.
This move comes in response to considerable demand from LVMH’s clients who wish to discover unforgettable destinations while enjoying exceptional experiences. This business venture will also enable the LVMH group to maximise the value of its brands thanks to numerous synergies and to capitalise on the long term growth of the high-end luxury hotel industry.
A first hospitality project developed by Group Arnault in Courchevel in the French Alps helped define the Maisons Cheval Blanc concept. From its opening in 2006, it quickly became the hotel of choice for the resort’s French and international clientele, and was notably awarded with two Michelin stars.
It therefore appeared as a clear choice to develop LVMH’s natural extension of activities in luxury hospitality with Cheval Blanc, already recognized as bearing the values and the savoir-faire of the Group – exclusivity, creativity, art de recevoir.
An original and innovative growth model based on management contracts, unique within the luxury goods brands.
In 2008, a team was established to develop the Cheval Blanc brand. It oversees the conception of the Maisons and their construction, the choice of their management team, the selection of their partners, the implementation of their sales strategy, and the control of their image. The objective of LVMH is indeed to control the luxury hospitality model it is envisioning, from conception to day-to-day operations.
The business growth model retained is that of the management contract, a unique model in the world of luxury goods brands. With this strategy, LVMH, which owns 100% of “LVMH Hotel Management”, maintains complete control over the concept, distribution, brand and image of its Maisons while minimising capital commitment.
Two projects are already under construction: Al Sodah in Oman and Amoun in Aswan, Egypt.
Cheval Blanc will be developed in partnership with carefully selected investors. It is with Samih Sawiris, Chairman and Founder of Orascom Development Holding, one of Egypt’s leading groups, listed in Switzerland and in Egypt, that Cheval Blanc has signed its first two international projects.
Both Maisons were conceived in collaboration with Jean-Michel Gathy (Denniston International Architects) known for his award-winning creations.
The first Maison, located to the south of the Sultanate of Oman, is situated on an 11 square kilometre island, and is an invitation to discover the unexplored shores of the Indian Ocean. Only thirty two private villas, of which the smallest is 500m2, will be built, each with its own beach and swimming pool. The Sultanate is actively involved in this project.
The second Maison, an exclusive development on the private island of Amoun in Aswan, will offer approximately forty exceptional suites directly overlooking the Nile. They will boast sensational views of the Aga Khan Mausoleum from their private swimming pools, in an enchanting Upper Egypt atmosphere.
The opening of both Maisons is expected in 2012. Other projects are currently under study in exceptional destinations.