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Experiential focused luxury retail brand LVMH plans London Hotel

The Property Addict / Luxury Lifestyle

United Kingdom

Mar 02 2019

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LVMH is betting that a new Cheval Blanc hotel by 'starchitect' Norman Foster around the corner from its Louis Vuitton mega-store in London’s Bond Street will increase dwell time at its nearby retail locations and advance the French group’s ambitions in experiential luxury.

The conglomerate is planning a hotel, spa, restaurants and a flagship store that appears intended for Hedi Slimane’s Celine on a stretch of Grafton Street that extends from Dover Street to Bond Street, according to a public consultation that opened on Thursday. The development, if it receives permission to proceed from the local council, would neighbour LVMH’s new Givenchy store that opened in late 2018. The project was conceived in conjunction with property group O&H and is expected to be completed by the third-quarter of 2022, documents show. The deal could be valued at up to half a billion pounds, one source estimated.

But while hotels, food and beverage have long been considered an effective way of extending shopping time, profitability has fallen short of personal luxury goods. LVMH owns Bulgari Hotels as well as the Cheval Blanc hotel chain, where rooms cost from $400 to $1,200 a night. Developed by LVMH in 2006, Cheval Blanc is named after the group’s Bordeaux vineyard, and includes locations in Courchevel, the Maldives, Saint-Barthélemy and Saint-Tropez. Another new location is planned for Paris. Cheval Blanc currently sits under “other activities” on LVMH’s income statement, a bracket which was loss-making in its latest financial year.

The luxury hotel will mean “dwell time increases massively,” said Anthony Selwyn, head of London & International Retail at Savills, a global real estate firm. “Bond Street is the key location for luxury, so it doesn’t necessarily need a helping hand. The more likely beneficiaries are Albemarle and Dover Streets, linking off Grafton Street., where LVMH will likely put a few brands.”

Read the full article on the Business of Fashion

 

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