Luxury travel brand Belmond is betting big on experiential elements in its biggest expansion since LVMH acquired it in 2019. Next year, the brand plans to add luxury sleeper trains and luxury real estate developments as affluent travelers seek more immersive experiences.
“Our lodging identity is rooted in ‘slow luxury,'” said Belmond CEO Dan Ruff.
Ruff is launching an ambitious project for 2025, centered around a philosophy that values local culture, craftsmanship and memorable experiences. Think private villas in Italy, Michelin-starred chef trains, and leisurely travel that went out of fashion around the time of the invention of the jet engine.
classic train
Central to Ruff’s strategy is the expansion of Belmond’s rail division. The company will debut the Britannic Explorer in July 2025 as England and Wales’ first luxury sleeper train, offering three- or six-night journeys between London and Cornwall, the Lake District or Wales.
The train has 18 rooms, including three grand suites designed by London studio Albion Nord. Renowned chef Simon Logan will oversee the dining program, bringing the farm-to-table philosophy and eight Michelin stars to life.
Analysts estimate that the luxury train segment could see significant growth as wealthy travelers seek alternatives to traditional resorts and companies like Accor invest in competing products. .
Belmond already operates the Venice Simplon Orient Express and will add a new luxury train called Observatoire in March 2025. This is the first vehicle designed by the enigmatic artist JR, and will feature a freestanding bathtub, private library and hidden cameras. tea room.
villas and hotels
The company is also reimagining Italy’s iconic properties. In June 2025, Portofino’s legendary Splendid Hotel will unveil a major renovation by designer Martin Brudnicki. The project includes refreshed guest rooms and a new cocktail bar.
Nearby Belmond will open its first independent private villa, Villa Beatrice, in July 2025. This three-story mansion is perched above the bay with views of Portofino Bay. Featuring a subtropical garden, plunge pool, butler, personal chef and yoga pavilion.
The company is also expanding its water-based products. The company has appointed three-star Michelin chef Dominique Crenn to oversee culinary operations for its French river cruise fleet.
The new itinerary includes a 12-star Michelin cruise through Burgundy. With stops in Burgundy and Bordeaux, cruise prices start from around $140,000 (€135,000) for up to eight people.
LVMH’s plans
Although specific financial details have not been disclosed, industry experts say LVMH Moët Hennessy Louis Vuitton has invested heavily in Belmond’s expansion since acquiring the company for $2.6 billion in 2019. It is estimated that The luxury conglomerate reported revenue of 86.2 billion euros ($92.8 billion) in 2023. The company’s hospitality division is experiencing strong growth.
“It was probably undervalued in the stock market at the time of the acquisition,” Ruff said in response to a question. “So I think when LVMH looks back on that, they feel they probably got something much more valuable. They’re looking at investments to create generational value.”
Looking to the future, Ruff aims to strengthen Belmond’s position as a market leader in luxury rail travel while strengthening its own portfolio.
Ruff said LVMH “will continue to support us in investing significant capital in our portfolio.” “They’re looking at long-term benefits.”
Slow growth for slow travel
Belmond has maintained roughly the same size (approximately 46 properties) since its acquisition by LVMH.
This is surprising because when the deal closed in April 2019, LVMH executives had previously said they were planning to double Belmond’s size.
Mr. Ruff declined to say how much Belmond’s portfolio will grow or on what timeline, or whether its current size is sufficient.
Still, he emphasized several points about LVMH’s strategy for Belmond.
Selective portfolio management: Since 2019, we have added and sold properties to maintain approximately the same size. Ruff said Belmond intends to sell the property if it determines that “no matter how much we invest,[the property]will never be able to provide a superior guest experience.” For LVMH, brand performance is “fundamentally measured based on the guest experience,” Ruff said. Asset management strategy: Mr. Ruff says he owns almost all of the hotels, trains, boats and safaris. This ownership gives us control over our long-term strategy and helps us avoid short-term pressures to expand. For example, the soon-to-open Splendido Hotel will feature a new Dior Spa, underscoring LVMH’s strategy to leverage synergies across its luxury portfolio. Quality over scale: Ruff suggested there’s a “delicate balance” in scaling up luxury hotels, noting that he wouldn’t open a 200-room mega-hotel, but that would “create an experience that is true luxury.” He pointed out that there is a possibility that the hotel will not be able to provide such services and the scale of the hotel will be reduced. Scarcity is important for brand names.
