LVMH takes majority stake in French boutique operator

LVMH Moët Hennessy Louis Vuitton (LVMH) has made a reported 20% investment alongside investment fund Geneva-based Anaïs Ventures in French boutique hotel group Les Domaines de Fontenille, founded in 2016 by former fashion executive Frédéric Biousse and art dealer Guillaume Foucher.

After the deal, LVMH will be the biggest shareholder in the hotel chain, the two co-founders said in an interview.

The group has 12 properties in France, Spain and Italy with rates between €400 and €1,000 a night during the high season. It has a hotel project underway in Brittany, France, expected to open in spring 2025, and a luxury hotel in Aix-en-Provence, France, slated for 2026.

The new investment will enable the group to expand in Italy and Spain, and look at bigger properties, company CEO Linda Hazi said. She said they may also do some syndication deals with other partners when buying exceptional properties, particularly in Italy.

Les Domaines de Fontenille last year received an investment from French public institution Caisse des Dépôts et Consignations and became the first French hospitality group to achieve the status of «société à mission,» reflecting its commitment to combining hospitality excellence with positive social and environmental impact.

«Fontenille is the story of a lifetime. The arrival of LVMH and Anaïs Ventures marks a pivotal moment, reflecting the quality of work accomplished in a short time to create a strong and unique brand,» Biousse and Foucher said in a joint statement. “With this new investment, Les Domaines de Fontenille plans to acquire and renovate additional exceptional properties. Each project will adhere to the same guiding philosophy: upholding the highest environmental standards while preserving the heritage and terroir that define these unique destinations.”

LVMH already owns the luxury Belmond hotel company and its own Cheval Blanc hotel chain brand, as well as the luxury train service Venice Simplon Orient-Express. Earlier this year, LVMH also announced a partnership with Accor to accelerate the development of the Orient Express train brand.

Image: Torre Vella, Fontenille Menorca