LVMH collaborates with Accor to expand the Orient Express brand – The Points Guy

Accor’s Orient Express brand — which is widely recognized for its trains and has recently branched out into hotels and superyachts — now boasts a new, ultraluxury partner.

On Thursday, the companies revealed that LVMH, the French conglomerate overseeing renowned brands like Louis Vuitton and Christian Dior, is making a “strategic investment” in Accor’s Orient Express brand. The rejuvenated ultraluxury brand aims to open three hotels by 2025 and will launch two trains and a sailing ship by 2026 (with the ship presently being built in Saint-Nazaire, France).

“Orient Express has been legendary since its inception 140 years ago,” said Accor group chairman and CEO Sébastien Bazin in a statement. “With Orient Express, Accor is reimagining the art of travel, exploration, and epic journeys. Today, in partnership with LVMH, we are beginning a new chapter in this thrilling voyage, aiming to explore new horizons and exemplify the boldness and creative energy that inspire our groups. We are excited to leverage LVMH’s exceptional expertise to continue advancing the boundaries of this legend and bring its essence to life in an even more unique manner.”

Accor purchased the Orient Express brand in 2022, with LVMH’s new participation aimed at providing its “distinctive expertise in premium products and services.” Nevertheless, the choice of LVMH to partner with Accor could be puzzling to some: LVMH also owns Belmond, which runs the Venice Simplon-Orient-Express train. This train would technically be a competitor to Accor’s Orient Express trains once they commence operations.

However, the combined statement suggests that LVMH’s involvement with Belmond is beneficial for Accor’s future Orient Express initiatives, and it underscores the six premium train services that Belmond manages worldwide.

“According to the Accor-LVMH release, these remarkable experiences showcase the operational proficiency and innovative approach of LVMH Hospitality Excellence in the industry.”

“Since its inception, Orient Express has symbolized adventure and sophistication,” stated Bernard Arnault, LVMH CEO and group chairman, in an announcement. “Its name has become ingrained in our cultural heritage and continues to inspire top artists. Orient Express exemplifies the art of luxurious living and the boldness that propels each of our Houses. We are thrilled to collaborate with Accor to expedite the revival of this travel legend. Both of our groups will contribute our finest expertise to elevate Orient Express to the highest standards of hospitality.”

LVMH may view the deal as an opportunity to eliminate the confusion caused by having several operators of Orient Express-branded trains globally. This gives LVMH a reason to create a cohesive vision for the Orient Express and uphold the high luxury standards associated with LVMH. Additionally, the train could act as a promotional platform for other LVMH brands, such as Dom Perignon, Veuve Clicquot, and its various wine and spirit labels.

“I genuinely believe that LVMH isn’t aiming to become a key player in the travel industry. Instead, it views luxury experiences as complementary to its existing business portfolio, focusing less on brand overlap and more on opportunities to market its premium champagne,” stated Richard Clarke, a managing director at AB Bernstein, an asset management firm that specializes in hotels.

Over the years, there has been industry speculation about whether LVMH will maintain its partnerships with major hotel chains such as Accor or Marriott to develop additional hospitality brands. LVMH has been in a partnership with Marriott on Bulgari Hotels & Resorts since 2001 (albeit a minimal partnership, since the brand is not part of Marriott Bonvoy) and is currently leveraging its uniquely French synergy with Paris-based Accor.

However, do not interpret the collaboration with Orient Express as an indication that there will be additional hotel conglomerate partnerships with LVMH in the near future.

“The optimistic perspective is that this indicates LVMH might be considering a broader investment in Accor’s high-end segment, but Orient Express represents the pinnacle and has brand overlap,” Clarke commented. “I wouldn’t interpret too much from this agreement alone.”

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