>> LVMH is best known for this kind of thing, expensive Louis Vuitton handbags. Now, it wants to sell you a place to park your bag too. The luxury brand has struck a deal to buy high end hotel chain, Belmond. It's known for upscale hideaways like this, the Cipriani Hotel in Venice.
A favorite of the stars and site of George Clooney's wedding reception. The purchase has a $3.2 billion price tag. It marks a big expansion into hotels for LVMH. Reuters Breakingviews columnist, Lisa Jucca in Milan says the company wants to sell experiences as well as goods.>> So this purchase fits with that project, with that vision, and they are not complete novice to the hospitality business.
Because if you remember, in 2011, LVMH bought Bulgari, well known for its jewels, but also owner of its own hotel chains, the Bulgari hotels.>> The deal gives LVMH a portfolio of top properties. Among them, the only hotel within Machu Pichu in Peru. But it's paying a 40% premium to Belmond's closing share price from Thursday.
Some commentators say that looks a little expensive. LVMH will have to prove it knows how to sell expensive getaways, as well as Porsche bags.