Monte-Carlo Société des Bains de Mer is charting an ambitious international expansion that could significantly boost revenues for both the company and the Principality. CEO Stéphane Valeri outlined the strategy during his New Year address to the press on Wednesday 7th January, detailing plans to export Monaco’s luxury hospitality model to destinations frequented by Ultra High Net Worth Individuals.
The expansion strategy draws direct inspiration from Bernard Arnault’s LVMH, where the luxury conglomerate chairman sits as an administrator on SBM’s board. However, the Princely Government remains SBM’s major shareholder, positioning any international success as a direct benefit to Monaco’s economy.
“I look, for example, at the model of one of our shareholders with whom I have been able to develop good personal relationships and for whom I have great esteem: Bernard Arnault, an administrator on our board of directors with LVMH,” Valeri said. “I find his Cheval Blanc model to be a beautiful example to follow. He started with one and now has seven, I believe. This is not by chance — Bernard Arnault understood that profit comes through international development.”
Courchevel spearheads expansion
The centrepiece of SBM’s international push is Monte-Carlo One Courchevel, opening in December 2027 for the 2027-2028 winter season. Work has already begun on transforming the former Neiges Palace, with Swiss architects Herzog & de Meuron redesigning the property and creating three standalone chalets.
The project secured building permits for 5,000 additional square metres beyond the 7,700 existing square metres purchased. These additions will house exceptional luxury suites in Europe’s most prestigious ski resort, where the average price exceeds €30,000 per square metre.
“Courchevel is a true paradox,” Valeri explained. “There are more high-end clients than available rooms. The problem is not selling. The problem is creating luxury rooms and suites and managing them well to offer the very high level of service expected by these clients.”
The timing aligns fortuitously with the 2030 Winter Olympics, where Courchevel will host alpine skiing events.
Management contracts over ownership
Following Courchevel, SBM plans to pursue management contracts rather than property acquisitions. The strategy targets owners seeking Monte-Carlo’s expertise in operating ultra-luxury hotels, with SBM providing management under the Monte-Carlo Société des Bains de Mer brand.
Valeri revealed the company receives two to three management proposals weekly, all currently declined while focus remains on successfully launching Courchevel. “Slowly but surely, first we will succeed in opening Courchevel, and then we will continue not to invest in real estate but to manage for other owners large luxury hotels,” he said.
Advanced discussions are underway with Saudi Arabia, which Valeri described as “very interested in Monte-Carlo’s expertise and excellence”. Other projects are in development in cities frequented by UHNWIs, though specific locations remain undisclosed.
“It is clear we will not go anywhere except where our very high purchasing power clients are located,” Valeri emphasised.
Dubai restaurant and franchise expansion
The Monte-Carlo Club 1863 restaurant concept, developed in partnership with Dream International, will launch in Dubai in 2027. The brand combines gourmet dining with a festive atmosphere inspired by Riviera cuisine from the Côte d’Azur and Italian Ligurian coast.
SBM is seeking a premium Dubai location after rejecting two previous sites. “I prefer to take an extra year but be certain that the location we have will be premium in Dubai,” Valeri said.
Beyond Dubai, Monte-Carlo Club 1863 will open at Courchevel and expand to other destinations where SBM’s clientele congregates.
The company is also developing a franchise model for Café de Paris Monte-Carlo, the iconic brasserie on Casino Square. While no launches are planned before 2027 or 2028, the franchise would allow SBM to monetise the brand and expertise without capital investment. This represents SBM’s first franchise venture for any of its brands.
Cruise ships and Crystal partnership
SBM’s international footprint extends to the seas, where Monte-Carlo Casino roulette tables now operate on Crystal cruise ships. The Crystal Serenity has been recognised among the best cruise experiences by Condé Nast Traveler, and a third Monte-Carlo Casino will feature on a new Crystal vessel launching around 2030.
Targeting the ultra-wealthy
The entire strategy revolves around following SBM’s core market. “Our clientele are Ultra High Net Worth Individuals — people with very high purchasing power who want increasingly large rooms, or rather suites instead of rooms, and increasingly grand and beautiful suites,” Valeri explained.
This focus is already transforming SBM’s Monaco properties. Hôtel de Paris has more than doubled its revenue since its 2019 renovation, now reaching nearly €100 million annually. The ongoing Hôtel Hermitage renovation follows the same model, with newly renovated rooms commanding 25% premium pricing.
Monaco remains priority
Despite the international ambitions, Valeri emphasised Monaco’s primacy. Major projects on the 2030 horizon include completing the Hôtel Hermitage renovation, expanding Monte-Carlo Beach with new facilities and suites, and celebrating Monte-Carlo Bay’s jubilee with additional floors — pending government permits – to add storeys to the current 11-floor structure for luxury residences.
“This remains my priority — it is the country of SBM’s foundation, the country where the state is the main shareholder. We employ a few thousand Monegasques and are very proud to be Monegasque. This will remain for us the most beautiful country in the world.”
However, he added: “But it is obvious that if SBM can have a global, international dimension, it must also know how to seek growth and profit relays abroad.”
The strategy positions SBM to capture revenue from the global UHNWI population while leveraging the Monte-Carlo brand built over 160 years. With the Princely Government as majority shareholder, international profits flow directly back to Monaco, potentially providing significant additional revenue for the Principality beyond SBM’s substantial domestic operations.
The company currently employs between 5,000 and 6,000 people at peak season and operates hotels, restaurants, casinos, spas and entertainment venues across Monaco, generating €542.5 million in revenue in the first half of the 2025-2026 fiscal year, up 10% year-on-year.
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Main photo credit: Cassandra Tanti