- Don-Alvin Adegeest |
When LVMH acquired the luxury hospitality group Belmont at the end of 2018, it was a sign of things to come.
LVMH, which owns luxury fashion Maisons including Louis Vuitton, Dior, Celine and Fendi, at the time said the company saw future growth in the luxury sector coming not only from goods, but also from high-end experiences.
LVMH to develop a corner of London's Grafton Street
In collaboration with O&H, a privately owned property developer. London's Grafton Street in Mayfair is to be taken over by LVMH with a reported Cheval Blanc hotel, a restaurant, spa and a rumoured flagship Celine boutique, according to the Business of Fashion. The completion date is thought to be in the third quarter of 2022. Perhaps the Celine posters on the Bond Street end of the building are a giveaway.
The stretch of real estate in Mayfair is already a familiar neighbourhood for LVMH, who's portfolio of luxury brands occupy many leases. Bond Street is currently home to stores by Louis Vuitton, Loro Piana, Christian Dior and Rimowa, with Loewe, Celine, Moynat on Mount Street. Berluti's men's luxury boutique is a stone's throw from Louis Vuitton, on Conduit Street.
Sales of luxury goods are thriving
The luxury sector grew by 5 percent in 2018 to an estimated 1.2 trillion euros globally, according to Bain and Company, and is expected to continue in the range of 3-5 percent per year through 2025 to reach 320-365 billion euros. While Brexit will certainly have an impact, the "road to growth [will be] a bumpy one in the short term."
An article published in Forbes earlier this year stated millennials value experiences over possessions, with 65 percent of US millennials saving to travel, more than the average for other generations. One thing is certain, the Cheval Blanc hotel is designed to be as cozy as it is lavish, and promises to deliver the luxury of time amongst family or friends. How's that for experiential?
Photo credit: Celine interior, source Celine website