Rodeo Drive dust-up puts LVMH’s plans for hotel on hold

Hermès, Armani, Chanel voiced objections to plans for luxury hotel

Los Angeles /
Mar.March 04, 2022 12:09 PM
 Cheval Blanc with 468 Rodeo Drive (Getty, Google Maps)
Cheval Blanc with 468 Rodeo Drive (Getty, Google Maps)

UPDATED, Mar. 8, 2022, 7:46 a.m.: LVMH has hit a roadblock on its planned Cheval Blanc hotel on Rodeo Drive.

The company has asked the city of Beverly Hills to halt its review of the planned 115-key hotel on Rodeo Drive. The request came after a number of luxury retailers voiced objections to the plans, according to the Beverly Hills Planning Commission.

LVMH has asked for the commission to delay hearings to an undetermined date in the future, giving the company more time to provide information on how it can alleviate concerns about the project, according to Masa Alkire, a principal planner with the city.

“We are engaged in detailed studies regarding options for addressing the issues commissioners have identified,” a spokesperson for LVMH said in a statement. “Those studies will take time, and we are therefore requesting continuance of consideration of the project to a future date to be determined.”

The luxury French retailer announced plans to build a Cheval Blanc hotel at 468 Rodeo Drive — formerly occupied by Brooks Brothers. The hotel would also include a 500-person private club and restaurant space. Construction on the project was anticipated to start this year and finish in 2026.

Planning delays will push construction dates back further.

The delay requested by LVMH signals a need for additional time to figure out how it can build its project and take into account concerns brought by Hermès, Armani and Chanel.

Hermès, Giorgio Armani and Chanel were among retailers who had criticized the plans, arguing the hotel would block a shared alley used by the stores to serve their VIP clients.

The high-end retailers also voiced concerns that construction of the project would disrupt their own operations and asked for assurances they would be compensated for any interruptions or damage, according to planning documents.

The companies also asked LVMH to put up $500,000 for the city to hire a third-party construction monitor to “act as an exclusive, fulltime liaison between themselves and the [roject’s construction team.”

“There needs to be good faith negotiation between [LVMH] and its neighbors,” Commissioner Peter Ostroff said in a commission meeting on Feb. 24. “You haven’t done it, it doesn’t feel like you’ve engaged in good faith negotiations.”

City commissioners were also concerned about the increase in traffic the hotel might cause along Santa Monica Boulevard, which already accommodates about 1,400 an hour on a regular day. With the new hotel, that could increase to around 1,635 cars, according to LVMH’s estimates.

Despite opposition from the luxury retailers, many residents wrote to the city’s planning commission in support of the project.

“By adding a luxurious hotel with retail and dining options, we will finally have a strong anchor that will be a draw to tourists and locals alike,” Thomas Blumenthal, the CEO of Gearys, a watch retailer.

The Cheval Blanc isn’t LVMH’s only property on the famed luxury street. In December, the company bought the former 86-room Luxe hotel on Rodeo Drive for $200 million It’s unclear what the retailer plans to do with that property.




    This story has been updated to include a statement from a LVMH spokesperson. 


    Related Articles

    arrow_forward_ios
    Tom and Ruth Chapman; 335 Trousdale Pl. (Getty Images, Zillow)
    Fashion entrepreneurs’ ask on Trousdale Estates manse tops $6,000 psf
    Fashion entrepreneurs’ ask on Trousdale Estates manse tops $6,000 psf
    Gyorgy Gattyan with 24 Beverly Park Terrace
    Hungarian porn player lists Beverly Park mansion
    Hungarian porn player lists Beverly Park mansion
    HBC's Richard Baker with  9600 Wilshire Blvd (SFA, Cornell)
    Historic Saks Fifth Avenue complex in Beverly Hills eyed for redevelopment
    Historic Saks Fifth Avenue complex in Beverly Hills eyed for redevelopment
    Frome left: Mauricio Umanksy, Kyle Richards, and Umanksy's daughters with Beverly Hills (Getty, iStock)
    Luxe broker Mauricio Umansky to join daughters on Netflix series
    Luxe broker Mauricio Umansky to join daughters on Netflix series
    Bernard Arnault and Trousdale Estates home (The Asahi Shimbun, Bing, Getty Images)
    French billionaire Bernard Arnault flips Beverly Hills mansion to himself
    French billionaire Bernard Arnault flips Beverly Hills mansion to himself
    From left: Centennial Real Estate CEO Steven Levin, USAA Real Estate CEO Len O'Donnell, and Montgomery Street Partners co-founders Murray McCabe and Max Lamont in front of a rendering of the planned redevelopment at MainPlace mall in Santa Ana (Centennial, USAA, Montgomery Street Partners, MainPlace)
    $141M loan on Centennial’s OC mall heads to special servicing
    $141M loan on Centennial’s OC mall heads to special servicing
    514 Doheny Rd (Zillow)
    Beverly Hills home with link to late Lew Wasserman lists for $42M
    Beverly Hills home with link to late Lew Wasserman lists for $42M
    Merlone Geier's Peter Merlone and Tabani's Zaffar Tabani with 39340 10th Street West (Merlone Geier Partners, LinkedIn, Google Maps, iStock)
    Palmdale mall fetches $57M from Texas investor
    Palmdale mall fetches $57M from Texas investor
    arrow_forward_ios

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

    Loading...