Luxury travel operator Belmond to be sold

Belmond, operator of the Venice Simplon-Orient-Express and some of the world’s most iconic hotels, is to be taken over by French luxury goods company LVMH Moet Hennessy Louis Vuitton.

The two companies have entered into an agreement for LVMH to buy Belmond for $2.6 billion. The deal is expected to be completed in the first half of 2019.

London-based Belmond has a portfolio of 47 hotels, rail and river cruise businesses, including iconic properties such as the Cipriani in Venice, Hotel Splendido in Portofino, Copacabana Palace in Rio de Janeiro, and Cap Juluca in Anguilla.

It also runs the Venice Simplon-Orient-Express and Belmond Royal Scotsman as well as cruise companies such as Belmond Afloat in France fleet and Belmond Road to Mandalay.

In the year to the end of September it recorded earnings of $140 million.

LVMH chairman and CEO Bernard Arnault said: "Belmond delivers unique experiences to discerning travelers and owns a number of exceptional assets in the most desirable destinations.

"This acquisition will significantly increase LVMH’s presence in the ultimate hospitality world."

President and CEO Roeland Vos saidd: "Today’s announcement is the result of the strong execution of our strategic vision that builds on our pioneering legacy and is an exciting development for all stakeholders, including our employees."