Retail, Hospitality And The Olympic Games: LVMH’s Real Estate Strategy
In June 2023, it was confirmed that luxury conglomerate LVMH would become a premium sponsor of the Paris Olympic Games of 2024, a status it paid nearly $160 million to obtain. While it may have come to a surprise to see the world’s leading luxury group become the commercial partner of a mainstream sports event, the move was a clear strategic one that has since led to more tactical spending in anticipation of the event in less than 100 days. In the past year, the group has boosted its real estate portfolio by acquiring buildings in prime locations in Paris, New York and other city centers to enhance its presence across retail and hospitality, which it has expanded ahead of the Olympics and will continue to do so afterwards.
Louis Vuitton Expands Its Real Estate Beyond Retail
Following the continued success of the Monsieur Dior restaurant and archive museum that opened in the renovated Parisian Dior flagship on Avenue Montaigne in 2022, LVMH is turning to its other iconic brand Louis Vuitton to create immersive brand experiences through hospitality. It was announced that the brand will open its first hotel on the Champs Elysées in Paris, an iconic avenue that is undergoing transformations ahead of the Olympic games to regain momentum. The luxury group acquired a 6,000 square meter building which will undergo significant work to unveil what is expected to become a high-end hotel and dining destination that will without a doubt be an ode to the Louis Vuitton brand.
Real estate has become a momentous priority for LVMH: the acquisition of this building marks the third one made on the Champs Elysées Avenue. Nearly a billion has been spent to build future presence on a prime location and mix both retail and hospitality, something LVMH has also done in Miami when it helped turned a nearly-abandoned downtown Miami area into one of the trendiest areas of the city, the design district. The area was made up of a dozen blocks of warehouses and showrooms and was completely transformed thanks to the partnership between developer Craig Robins and LVMH to become a luxury hotspot comprised of shops, museums and restaurants. Of course, visitors can shop from a range of LVMH brands including Tiffany & Co, Louis Vuitton, Dior, Celine and others before sitting down for lunch at one of the many dining options or strolling around the enjoyable outdoor space and discovering seasonal cultural exhibitions. What LVMH helped accomplish with Miami’s design district is similar to the vision it has for Paris’ Champs Elysées avenue and by reinforcing its real estate footprint in this area, it ensures strong presence and visibility when it becomes a must-visit shopping and leisure area again.
