Market Overview

LVMH Reaches an Agreement with Belmond to Increase Its Presence in the Ultimate Hospitality World

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LVMH Moët Hennessy Louis Vuitton (LVMH.PA), the world's leading luxury
group and Belmond Ltd. (NYSE:BEL), owners, part-owners or managers of
46 luxury hotel, restaurant, train and river cruise properties, today
jointly announced that they have entered into a definitive agreement for
LVMH to acquire Belmond. LVMH is to acquire Belmond for $25.00 per Class
A share in cash. This represents an equity value of $2.6 billion in a
transaction with an enterprise value of $3.2 billion. In the twelve
months ended September 30, 2018, Belmond recorded total revenues of $572
million and adjusted EBITDA of $140 million. The transaction is expected
to complete in the first half of 2019 subject to the approval of
Belmond's shareholders and clearance by the relevant competition
authorities.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20181214005235/en/

Established over 40 years ago with the acquisition of Hotel Cipriani in
Venice, Belmond owns and operates a global collection of exceptional
hotel and luxury travel adventures in some of the world's most inspiring
and enriching destinations. The company operates in 24 countries with
its unique and distinctive portfolio of 46 hotel, rail and river cruise
experiences.

Belmond's iconic properties include hotels like Hotel Cipriani in
Venice, Hotel Splendido in Portofino, Copacabana Palace in Rio de
Janeiro, Le Manoir aux Quat'Saisons in Oxfordshire, Grand Hotel Europe
in St. Petersburg, Maroma Resort & Spa in Mexico, Hotel das Cataratas in
the Iguassu National Park in Brazil, and Cap Juluca in Anguilla.
Legendary trains, such as the Venice Simplon-Orient-Express and Belmond
Royal Scotsman and exceptional cruises such as Belmond Afloat in France
fleet and Belmond Road to Mandalay, complete a portfolio that offers
extraordinary experiences with curated activities and an understated
personal service to a globally-diverse, highly refined customer.

Through this acquisition, LVMH will significantly increase its presence
in the ultimate luxury hotel world. Synonymous with history, heritage
and timeless experiences, Belmond has a seasoned management team and is
an ideal complement to the Cheval Blanc maisons, renowned for their
exceptional service, architecture and unique gastronomy.

Roland Hernandez, Chairman of the Board of Directors of Belmond Ltd,
commented: "Following a strategic review that attracted broad and deep
interest from a wide range of real estate and lodging companies,
sovereign wealth institutions and other financial buyers around the
world, the Board has concluded that this transaction with LVMH provides
compelling and certain value for our shareholders as well as an exciting
path forward with a group that appreciates Belmond's irreplaceable
assets and strong management team."

Roeland Vos, Belmond's President and Chief Executive Officer, said:
"Today's announcement is the result of the strong execution of our
strategic vision that builds on our pioneering legacy and is an exciting
development for all stakeholders, including our employees. We are
confident that, as part of LVMH's world-class family of brands,
Belmond's ability to deliver timeless, one-of-a-kind luxury experiences
will reach new levels."

Bernard Arnault, Chairman and Chief Executive Offer of LVMH, added:
"Belmond delivers unique experiences to discerning travelers and owns a
number of exceptional assets in the most desirable destinations. Its
heritage, its innovative services, its excellence in execution and its
entrepreneurship resonates well with the values of the Group and is
complementary to our own Cheval Blanc maisons and the Bvlgari hotels
activities. This acquisition will significantly increase LVMH's presence
in the ultimate hospitality world."

LVMH

LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits
by a portfolio of brands that includes Moët & Chandon, Dom Pérignon,
Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d'Yquem,
Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars,
Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de Mi
Tierra, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes,
Cape Mentelle, Newton, Bodega Numanthia and Ao Yun. Its Fashion and
Leather Goods division includes Louis Vuitton, Christian Dior Couture,
Celine, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Marc
Jacobs, Berluti, Nicholas Kirkwood, Loro Piana, RIMOWA and Jean Patou.
LVMH is present in the Perfumes and Cosmetics sector with Parfums
Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes
Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Fenty
Beauty by Rihanna and Maison Francis Kurkdjian. LVMH's Watches and
Jewelry division comprises Bvlgari, TAG Heuer, Chaumet, Dior Watches,
Zenith, Fred and Hublot. LVMH is also active in selective retailing as
well as in other activities through DFS, Sephora, Le Bon Marché, La
Samaritaine, Groupe Les Echos, Cova, Le Jardin d'Acclimatation, Royal
Van Lent and Cheval Blanc hotels.

BELMOND LTD

Belmond (Belmond.com)
is a global collection of exceptional hotel and luxury travel adventures
in some of the world's most inspiring and enriching destinations.
Established over 40 years ago with the acquisition of Belmond Hotel
Cipriani in Venice, its unique and distinctive portfolio now embraces 46
hotel, rail and river cruise experiences, excluding one scheduled for a
2019 opening in London, in many of the world's most celebrated
destinations. From city landmarks to intimate resorts, the collection
includes Belmond Grand Hotel Europe, St. Petersburg; Belmond Copacabana
Palace, Rio de Janeiro; Belmond Maroma Resort & Spa, Riviera Maya; and
Belmond El Encanto, Santa Barbara. Belmond also encompasses safaris,
seven luxury tourist trains, including the Venice
Simplon-Orient-Express, and two river cruises. Belmond also operates
‘21' Club, one of New York's most storied restaurants. Further
information on the Company can be found at
investor.Belmond.com.

A conference call will take place on Friday
14th December
at 3pm (Paris time).
Number
to call from:
-France: +33 1 72 72 74 03 – PIN: 61941923#
-UK:
+44 207 1943 759 – PIN: 61941923#
-US: +1 646 722 4916 –
PIN: 61941923#

"This document may contain certain forward looking statements which
are based on estimations and forecasts. By their nature, these forward
looking statements are subject to important risks and uncertainties and
factors beyond our control or ability to predict, in particular those
described in LVMH's Reference Document which is available on the website
(
www.lvmh.com).
These forward looking statements should not be considered as a guarantee
of future performance, the actual results could differ materially from
those expressed or implied by them. The forward looking statements only
reflect LVMH's views as of the date of this document, and LVMH does not
undertake to revise or update these forward looking statements. The
forward looking statements should be used with caution and
circumspection and in no event can LVMH and its Management be held
responsible for any investment or other decision based upon such
statements. The information in this document does not constitute an
offer to sell or an invitation to buy shares in LVMH or an invitation or
inducement to engage in any other investment activities."

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