The Wall Street Journal recently reported that the French fashion conglomerate Louis Vuitton Moet Hennessy plans to develop another business sphere. The luxury goods maker intends to launch a new venture, and it's not about a beauty salon - Louis Vuitton will now also be involved in the hotel business.
This will not be the brand's first attempt to enter the tourism sector – back in 2006, the bag and fashion accessories maker opened its own LVMH Cheval Blanc hotel at France's prestigious ski resort Courchevel. Incidentally, the name Cheval Blanc was not chosen by chance – that is the name of a winery also owned by Louis Vuitton Moet Hennessy.
Currently, the fashion house plans to open two luxury hotels in the Middle East – in Egypt and Oman. Both will be located on islands - Maison Cheval Blanc in Oman on Al Sodah Island, and the Egyptian hotel on Amun Island near the city of Aswan. The property in Oman will consist of 32 luxurious villas spread over 11 square kilometers, while in Egypt, 40 suites (rooms with improved layout) will be opened, each with windows overlooking the Nile River.
To manage and oversee the hotel business, the company created a new structure - LVMH Hotel Management. As for the opening date, it is scheduled for 2012. It is worth noting that Louis Vuitton Moet Hennessy, like many other similar holdings, does not directly build hotels – in this case, the operator only needs to sign a contract that provides management, technical consulting, marketing support, and assistance with opening. Thus, Louis Vuitton manages the hotels for a fee. The advantages for both parties are obvious, as property owners get the opportunity to advertise their services, and LVMH advertises its products directly on the premises. For example, the brand, which owns trademarks such as Louis Vuitton, Dior, Givenchy, Marc Jacobs, gets use of boutique space, spa centers, etc., where one can buy not only poker sets and souvenirs, but also clothing, accessories, and other products of this company.
Louis Vuitton Moet Hennessy will work in cooperation with the Egyptian company Development Holding – one of the largest investors in the hotel business in the region.
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