• Wed. Apr 24th, 2024

Billionaire Loses Vote To Build Luxury Hotel in Beverly Hills, California

Bynewsmagzines

Jun 2, 2023
A retail property at 468 N. Rodeo Drive in Beverly Hills, California, will remain just that after a vote failed to approve the redevelopment the site into a luxury hotel. (Gene Inserto/CoStar)

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Voters in Beverly Hills, California — one of the wealthiest cities in America — have officially shot down luxury hotel development plans along the world famous shopping district Rodeo Drive.

Final voting results Friday showed measures fell at least 80 votes short of approving the redevelopment of a former Brooks Brothers into a 109-room Cheval Blanc hotel at 468 N. Rodeo Drive, according to the Los Angeles County Registrar-Recorder/County Clerk.

The vote was seen by analysts as having a potentially chilling effect on future hotel development in Beverly Hills and showed the power of unions and protesting residents who came out to oppose the project.

A spokesperson for project developer and French luxury conglomerate LVMH previously said it won’t bring the hotel project back in any form if the final vote rejected the development. LVMH’s founder, chairman and reported owner of about half the company is billionaire Bernard Arnault.

The project’s rejection cost the city roughly $778 million in tax revenue to its general fund over the next 30 years.

Even so, residents turned out in opposition to the project in part because they opposed new construction and expressed concerns the city didn’t have enough affordable housing for future hotel workers.

Analysts told CoStar News the hotel’s denial will make developers think before attempting development in the city. At least 216 luxury hotel rooms are in the works in Beverly Hills in a market that features 17 hotel properties, according to CoStar data.

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