Bvlgari and Ritz-Carlton launch hotel and retail venture

Print Article E-Mail Article

By Updesh Kapur

Italian jewellery house Bvlgari is to capitalise on the strength of its international brand name with a move into the hotel industry through a tie-up with Ritz-Carlton. The newly-formed Bvlgari Hotels and Resorts will draw on the management and operational expertise of Ritz Carlton to open five-star luxury hotels in key cities around the world.

Bvlgari and Ritz-Carlton parent company Marriott International said it was a natural step forward to tap into the growing luxury market, estimated to be worth more than $30bn worldwide.

Bvlgari chief executive officer Francesco Trapani admitted it was a bold move for the company into unchartered territory.  "But we have successfully diversified from jewellery and watches into fragrances and leather good accessories a few years ago," he said. "We are positioned as a contemporary Italian jeweller with a luxury lifestyle brand. Being very strong in retail markets around the world, we believe we are well placed to enhance the Bvlgari brand name.

"At this stage we haven't decided on the retail concept," he said, but added that retailing in Bvlgari hotels was likely to be a key focus.

Trapani said the company will spend the next two years finding suitable locations before opening the first hotel in 2003. London, New York, Paris, Los Angeles and Miami are some of the destinations earmarked. The hotels will have a distinct Italian feel to them from guest room design to cuisine and amenities. Bvlgari and Marriott will each inject $70m in the $800m project with most of the investment from property owners and developers.