Hermès Invests €300 Million in Rue de Sèvres Store

It isn’t just Chanel that’s investing in owning its own iconic commercial premises. Hermès has now joined the luxury real estate trend, spending nearly €300 million to acquire the premises of its boutique on Rue de Sèvres in Paris, according to a report by CFNews Immo. This move mirrors the broader push among luxury brands, including Chanel’s recent acquisition of a building on Avenue Montaigne, to secure prime locations and safeguard against rising rental costs.

Image courtesy: Hermès

The iconic store at 17 Rue de Sèvres, where Hermès has operated since 2010, occupies 1,300 square meters in a stunning Art Deco building that once housed the swimming pool of the Lutetia Hotel in the mid-20th century. The space, fully renovated in 2021, is known for its tall ceilings and corridors that once served bathers in the hotel’s pool. Hermès purchased the store premises from Sylvain Fargeon, who had owned it since 2005, though the entire building itself remains under different ownership.

Image courtesy: Hermès

This isn’t the first major real estate investment Hermès has made in Paris. Just a year ago, the brand spent €230 million to buy a 9,328-square-meter property on Rue d’Anjou from Covivio. Additionally, Hermès will soon unveil a new boutique in eastern Paris at 102 Rue de Charonne, though the brand is renting that particular location.

Founded in 1837, Hermès has steadily expanded its global presence, now operating 295 stores across 45 countries. With 55% of its products crafted in-house, the brand is set to increase its production capabilities with three new leather goods manufacturing sites planned in France between 2025 and 2027.

Paris continues to be the epicenter of luxury fashion, and iconic maisons are strengthening their presence in this ever-evolving market. The growing trend of brands investing in owning their flagship locations signals a deeper commitment to preserving their heritage while securing long-term growth in an increasingly competitive landscape.