French luxury group LVMH has acquired a historic villa in Cannes, France, for around €50 million ($52.7 million), to showcase its brands during the city’s star-studded festivals, people familiar with the matter said.

LVMH Moët Hennessy Louis Vuitton SE will use the 12-bedroom property to host exclusive shows and events for its companies, which include Louis Vuitton, Christian Dior and Moet & Chandon, said one of the people, who asked not to be identified discussing a private matter. 

The transaction closed for €46.5 million in April, excluding furniture and fees, previously unreported filings seen by Bloomberg show. It is one of the largest real estate deals ever in Cannes. Agency Magrey & Sons brokered the deal.

A representative for LVMH declined to comment.

Luxury and fashion companies are increasingly investing in hotels and branded residences to host top customers, extend business lines and create Instagrammable experiential marketing opportunities. LVMH has been on a property spending spree, buying a record €2.45 billion of real estate globally in 2023, mostly for retail operations, and recently bought a stake in a high-end French hotel group.

LVMH plans to rent out the villa during the summer months, when tourists flock to the French Riviera, the people said. 

Villa Bagatelle sits on a hill with views of the city and Mediterranean. The Art Deco-style property has two outdoor swimming pools, one indoor pool, terraced gardens and can accommodate 14 members of staff. Built in 1928, it’s had a series of high-profile owners including the Russian-Armenian billionaire Sarkisov brothers, banker Anatoly Motylev and Algerian businessman Rafik Khalifa, according to Le Monde.

Cannes is home to the renowned Film Festival each May and the advertising industry’s flagship summit, Cannes Lion International Festival of Creativity, in June — both known for attracting A-list celebrities to lavish villa and yacht parties. LVMH is already a mainstay at the events, with its brands dressing stars and hosting receptions. At this year’s Cannes Film Festival, Dior hosted a poolside party attended by supermodel Naomi Campbell and actor Anya Taylor-Joy.

In February, LVMH announced it was starting an entertainment arm meant to boost the appeal of its labels. The effort is meant to expand marketing efforts for its various brands into premium film, TV and audio formats.