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Wall Street Journal | LVMH Moët Hennessy Louis Vuitton is checking into the hotel business. The world's largest luxury-goods company, home to brands such as the Louis Vuitton fashion house and champagne maker Veuve Clicquot, said Thursday it will develop resorts using the name of its Bordeaux winery, Cheval Blanc. The company tested the concept with a first location that opened in the French ski resort Courchevel in 2006. Two more hotels are scheduled to join the new chain by 2012 in Oman and Egypt, the company said.
The project is "a natural extension of activities in luxury hospitality with Cheval Blanc," LVMH said in a statement.
Like many top hotel operators, LVMH is limiting its exposure to the volatile hotel industry. It won't own the real estate or finance construction, but will instead run the resorts under management contract, a similar model to other high-end chains such as The Ritz-Carlton. The new LVMH Hotel Management business has six employees.