Press Releases
Bulgari launches luxury hotel concept with USD 800 million joint venture
London, England: 13 February 2001 – lgari SpA (MILAN:BUL) the contemporary Italian jeweller and world renowned luxury goods brand, today announces the formation of Bvlgari Hotels & Resorts, a joint venture between Bulgari and the Luxury Group, the new luxury hotel division of Marriott International, Inc. (NYSE:MAR).
Each of the Bvlgari Hotels & Resorts will be designed by Bulgari using their striking Italian contemporary style and will offer the finest Italian cuisine, amenities and furnishings available. They will be managed by Marriott International’s Luxury Group, based in Atlanta, Georgia which also manages The Ritz-Carlton Hotel Company, L.L.C.
The joint venture company, the Board of which comprises an equal mix of senior Bulgari and Marriott representatives, is already considering sites in London, Rome, Paris, New York, Miami, Southern California and island resort destinations – with negotiations underway at several locations. Each property will capitalise upon and enhance Bulgari’s proven luxury brand image with pricing expected at the top of each market.
As the joint venture identifies and approves specific sites in these seven locations, Bulgari and Marriott expect to invest an aggregate amount of approximately $140 million in equity and subordinated loans over five years. It is expected that the equity will be split 65% Bulgari vs 35% Marriott while the subordinated loans will be split 35% Bulgari vs 65% Marriott. The real estate will generally be provided on a lease basis by local partners.
The total portfolio after five years including real estate will be worth approximately $800 million.
Commenting on today’s announcement, Bulgari chief executive officer Francesco Trapani said: “We believe Bvlgari Hotels & Resorts will play a unique role in further enhancing the Bulgari Brand and shareholder value. Visibility in key retail markets, the innovativeness of the concept and the opportunity to portray our design and lifestyle make Bvlgari Hotels & Resorts the ultimate brand statement. In joining Ritz-Carlton in Marriott International’s Luxury Group, we believe we have found the perfect partner to ensure the highest level of service and operational expertise”.
William R. Tiefel, vice-chairman of Marriott International and chairman of The Ritz-Carlton Hotel Company, said:
"The newly created Luxury Group will be able to capitalise upon the unparalleled standards of industry excellence which are synonymous with Ritz Carlton - as attested to by its two Malcolm Baldrige National Quality Awards, the preeminent recognition for quality in the United States. With the prestige of the Bvlgari brand, the reputation of Ritz-Carlton for luxury hotel management, and Marriott’s world-class branding architecture and hotel development expertise, Bvlgari Hotels & Resorts will quickly become one of the finest and unique hotel brands”.
The Board of Directors of Bulgari has approved the project and has resolved to call an Extraordinary Shareholders Meeting to approve the necessary resolutions.
Bulgari is being advised by Deutsche Bank.
For further information:
Alex Mackey Mobile 07808 581 674
Dido Laurimore Mobile 07801 654 424
GCI Financial 0207 398 0800