LVMH books Rodeo Drive hotel for $200M: sources

Paris-based luxury conglomerate gets recently shuttered Luxe from Harkham family

Los Angeles /
Dec.December 16, 2021 03:10 PM
Bernard Arnault, chief executive officer, LVMH, in front of 360 N Rodeo Drive (Getty Images, LoopNet/Illustration by Steven Dilakian for The Real Deal)

It’s the four-letter word that every seller on Rodeo Drive loves to hear: LVMH.

The Paris-based luxury conglomerate, which owns Louis Vuitton, Dior, Tiffany & Co, Fendi and other brands, bought the former 86-key Luxe hotel on Rodeo Drive from the Harkham family for $200 million, sources familiar with the transaction told The Real Deal. JLL announced the sale yesterday, but did not disclose the buyer or the price. LVMH did not respond to a request for comment. Newmark’s Jay Luchs represented the buyer on the deal.

The sale, at around $2.3 million per room, is one of the largest ever in terms of a per key price in California, according to Alan Reay, the president of brokerage firm Atlas Hospitality Group, which was not involved in the deal. The price was slightly less on a per-key basis than Host Hotels & Resorts’ $148 million purchase of the 59-key Alila Ventana hotel in Big Sur earlier this year — around $2.5 million per room.

The 42,560-square-foot property also includes three high-end retail storefronts leased to Rolex, Patek Philppe and Ferrari.

It’s unclear whether LVMH is planning to keep the hotel intact, seek new tenants for the stores or switch uses for the retail space.

It’s also unclear how the acquisition of the Luxe might affect plans LVMH has just a block north at 468 North Rodeo Drive, where it is planning to build a nine-story hotel under its Cheval Blanc brand. Formerly a Brooks Brothers store, LVMH bought the site for $245 million in 2018, records show. In 2020, the firm bought a 6,000-square-foot adjacent property at 449 North Rodeo Drive for $30 million.

Last year, Beverly Hills-based hotelier Efram Harkham permanently shut the 86-key boutique hotel on the site. At the time, his son Aron Harkham said that the property got “caught up with the bad timing of the global travel market,” by remodeling just before the pandemic hit.

The Harkham family had owned the property since the 1990s.

LVMH’s deal also provides evidence that the pandemic hasn’t paused all high-end luxury retail activity. Last year, a partnership between Crown Equity and Ascendant Capital Partners sold a 11,600-square-foot retail property at 457-459 Rodeo Drive for $122 million — around $10,500 a foot.





    Related Articles

    arrow_forward_ios
    Haim “Milo” Revah and the property at 705 N. Alta Drive in Beverley Hills (Redfin, Getty)
    Foreclosed Beverly Flats home listed for $22M
    Foreclosed Beverly Flats home listed for $22M
    Michael Shabani with 8400 Melrose Avenue (Google Maps, iStock) Gucci, Melrose
    Gucci plans flagship at Melrose & Melrose
    Gucci plans flagship at Melrose & Melrose
    Clockwise from top left: Harrison Street CEO Christopher Merrill, 2825 Santa Monica Boulevard, Stockdale Capital Partners' Steven Yari and Shawn Yari and 9090 Wilshire Boulevard (Harrison Street, Stockdale Capital Partners) 
    Harrison Street buys Westside medical offices for $156M
    Harrison Street buys Westside medical offices for $156M
     Spirit Realty's Jackson Hsieh with   5038 West Avenue North (Real Share Net Lease, Loopnet)
    Texas investor seeks premium on sale of Antelope Valley retail
    Texas investor seeks premium on sale of Antelope Valley retail
    Roy Eddleman and exterior of Villa Firenze (University of California Irvine, Zillow)
    Villa Firenze listed for $120M
    Villa Firenze listed for $120M
    Frank Zarabi of Fam Brands and 419 Robert Lane (Fam Brands, Redfin)
    Fashion entrepreneur Frank Zarabi sells Wallace Neff-designed mansion for $19M
    Fashion entrepreneur Frank Zarabi sells Wallace Neff-designed mansion for $19M
    Spring Place's Christian Toraldo Spring Place in Beverly Hills (Twitter, Spring Place)
    Beverly Hills co-workspace faces sanctions on charges of hard partying
    Beverly Hills co-workspace faces sanctions on charges of hard partying
     Gary Friedman with 1360 Summitridge (Getty, Aaron Kirman Group)
    RH Chief Gary Friedman sells Beverly Hills estate
    RH Chief Gary Friedman sells Beverly Hills estate
    arrow_forward_ios

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

    Loading...