LVMH enters restaurant business in Asia
World’s largest luxury group, LVMH, has recently acquired Singapore-based Crystal Jade restaurant chain for around $100 million. The deal will give LCapital Asia, the private equity division of LVMH, a 90 percent stake in the restaurant group. With over 130 restaurants in over 10 countries in Asia, Crystal Jade includes a mix of Chinese fine dining, casual dining, and specialty restaurants.
The opportunity for increased beverage tie-ins through the restaurant chain should boost sales of LVMH’s fine wines and spirits division, which were down 3 percent due largely to luxury crackdowns in the Chinese market.
LVMH will look to expand Crystal Jade into additional markets in China, southeast Asia, and the Middle East through joint ventures and franchises, and sees opportunities for additional penetration in existing markets. LCapital Asia expects to dedicate 45-50 percent of its US$1 billion funds to China investments.
LVMH is already involved in hospitality with two operating hotels under the Cheval Blanc brand, one in Courchevel (France) and one in the Maldives.