The French luxury group on Thursday said Orascom would finance the construction of the two resorts, expected to open in 2012, while LVMH would run them and get a percentage of sales and profits.
LVMH said it had created a unit called LVMH Hotel Management to run the resorts, which would be called Cheval Blanc, inspired by its Michelin-star hotel in the Alpine resort of Courchevel.
The French group said the resorts would give it exposure to the long-term growth potential of the luxury hotel sector as well as new selling points for its brands.
“Other projects are currently under study in exceptional destinations,” LVMH said in a statement. (Reporting by Astrid Wendlandt and Pascale Denis; Editing by Jon Loades-Carter)
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