Swanky Luxe Rodeo Drive closes forever

86-key property become LA’s first high-end hotel to close because of pandemic

Los Angeles /
Sep.September 23, 2020 09:25 AM
Luxe Hotel Owner Efrem Harkham and the hotel (Credit: Barry King/WireImage via Getty Images)
Luxe Hotel Owner Efrem Harkham and the hotel (Credit: Barry King/WireImage via Getty Images)

Luxe Rodeo Drive in Beverly Hills is closing, marking the first high-end hotel in Los Angeles to cease operations because of the impact of Covid-19.

Efrem Harkham, CEO of Luxe Hotels, informed employees in a letter that the 86-key hotel would shutter, according to the Los Angeles Times.

Harkham’s son Aron Harkham, president of Luxe Hotels, said the property got “caught up with the bad timing of the global travel market,” by remodeling just before the pandemic hit.

The future of the Luxe Rodeo Drive at 360 North Rodeo Drive seems uncertain. Aron Harkham said the company is considering “alternative options” for the property given the drop in demand for hotel rooms. Nationwide, hotel occupancy is around 50 percent, a little higher in L.A., according to a recent STR report.

Luxe Hotels operates three locations in L.A. and New York. Harkham bought the Rodeo Drive property in the mid-1990s.

The Luxe Rodeo Drive probably won’t be the last of Southern California’s many high-end hotels to close amid the pandemic. Around 60 hotels in L.A. and Orange counties are more than 30 days behind on their mortgages, according to the Times.

The rate of delinquencies among commercial mortgage-backed securities tied to hotels shot up from 13.6 percent in May to 21.6 percent in June. For comparison, 12.8 percent of retail CMBS loans were delinquent in June.

Some hotels have kept their doors open with federal loans through the Paycheck Protection Program. Some lenders have also worked with borrowers over loan payments and delinquencies. [LAT]Dennis Lynch


Related Articles

arrow_forward_ios
Hilton & Hyland’s David Kramer, Lori Hyland, Billy Jack Carter
Hilton & Hyland taps David Kramer as president
Hilton & Hyland taps David Kramer as president
Nassef Sawiris and 440 Trousdale Place in Beverley Hills (Google Maps, Getty)
Egyptian billionaire ID’d as buyer of $24M home in Trousdale Estates
Egyptian billionaire ID’d as buyer of $24M home in Trousdale Estates
Beverly Hills Mayor Lili Bosse and LVMH's Bernard Arnault with renderings of Cheval Blanc (City of Beverly Hills, Getty, Gruen Associates)
Beverly Hills voters may decide fate of Cheval Blanc hotel
Beverly Hills voters may decide fate of Cheval Blanc hotel
Billy Jack Carter (Images courtesy of Hilton & Hyland)
Billy Jack Carter rejoins luxe agency Hilton & Hyland
Billy Jack Carter rejoins luxe agency Hilton & Hyland
Dean Martin and Guilford Glazer with 601 Mountain Drive (Illustration by The Real Deal with Getty, Zillow)
Once listed for $75M, The Glazer Estate trades for $40M
Once listed for $75M, The Glazer Estate trades for $40M
Clockwise from left: Erewhon Studio City, The One, Nile Niami,  Chris Pearson, Erewhon CEO Tony Antoci and Midwood CEO John Usdan (Getty; Illustration by The Real Deal)
SoCal’s wildest real estate lawsuits of 2022
SoCal’s wildest real estate lawsuits of 2022
1332 Laurel Way in Beverley Hills (The Laurel Way, Getty)
Beverly Hills Post Office mansion sells at discount
Beverly Hills Post Office mansion sells at discount
Benjamin “Bugsy” Siegel with 810 North Linden Drive
Bugsy Siegel murder mansion in Beverly Hills lists for $17M
Bugsy Siegel murder mansion in Beverly Hills lists for $17M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...