LVMH cooperates with Accor to develop the Orient Express brand

Accor’s Orient Express brand – perhaps best known for trains but has expanded its horizons to include hotels and super yacht in recent years – now has a new, super luxurious partner.

The companies announced Thursday that LVMH, the French conglomerate that manages iconic brands such as Louis Vuitton and Christian Dior, is making a “strategic investment” in Accor’s Orient Express brand. The super luxury brand is expected to be revived operate three hotels by 2025as well as two convoys and a sailing ship by 2026 (the latter currently under construction in Saint-Nazaire, France).

Accor Group President and CEO Sébastien Bazin said: “Orient Express has been a legend since its founding 140 years ago. statement. “With Orient Express, Accor is innovating the art of travel, discovery and great adventure. With LVMH today, we are opening a new chapter in this exciting journey, with the ambition to explore the new horizons and embody the audacity and creative passion that drives our teams. We are excited to leverage LVMH’s rare expertise to continue to push the boundaries term of this legend and brings its embodiment to life in a more special way than ever before.”

Accor acquired the Orient Express brand in 2022 and the new involvement of LVMH aims to bring “unique expertise in high-quality products and services”. However, LVMH’s decision to partner with Accor may upset some: The company also owns Belmond, which operates Venice Simplon-Orient-Express train. Technically, it will serve as a rival to Accor’s Orient Express trains when they start rolling on the tracks.

But the overall announcement appeared to portray LVMH’s Belmond experience as ultimately positive for Accor’s Orient Express plans, and it highlighted the six luxury train services Belmond operates around the world.

“These extraordinary experiences reflect the operational expertise and innovation of LVMH Hospitality Excellence in this field,” said an Accor-LVMH press release.

“Orient Express has embodied adventure and luxury since its inception,” LVMH group CEO and chairman Bernard Arnault said in a statement. “Its name has become part of our cultural heritage and remains a source of inspiration for the greatest artists. Orient Express epitomizes the refined art of living and the boldness that drives every Our home. We are excited to partner with Accor to accelerate the growth of this travel icon. Each of our teams will bring the best of their expertise to take Orient Express to the top pinnacle of the art of hospitality.”

It’s also possible that LVMH sees the deal as an opportunity to reduce confusion surrounding the many Orient Express-branded train operators around the world. There is momentum for LVMH to build on the vision for Orient Express and ensure it maintains the high standards of luxury for which LVMH is famous. Furthermore, the train could serve as a way to promote LVMH’s other businesses, such as Dom Perignon, Veuve Clicquot and the group’s other wine and spirits brands.

“I don’t really think LVMH has ambitions to be a major player in travel but sees luxury experiences as synergistic with the rest of the business, so [it] Richard Clarke, executive director of hotels at AB Bernstein, an asset management company, said they are less worried about brand duplication and more worried about where champagne can be sold. its high level.

There has been much debate in the industry over the years about whether LVMH will continue to partner with hotel giants like Accor or Marriott to collaborate on more hotel brands. LVMH has partnered with Marriott to build Bulgari Hotels & Resorts since 2001 (a very light partnership since the brand does not participate in Marriott Bonvoy) and is now capitalizing on the synergy’s je ne sais quoi of France with Paris-based Accor.

But don’t take the Orient Express partnership as a signal that you can see more hotel group partnerships with LVMH.

Clarke added: “The optimistic view is that this is a sign LVMH may be interested in a larger stake in Accor’s luxury business, but Orient Express is right at the top and there is crossover between brands”. “I wouldn’t read too much beyond this agreement.”

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