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LA City Council rescinds Hollywood hotel approval after legal defeat

Relevant Group’s proposal would have brought 114 guest rooms, 2K sf rooftop restaurant

Los Angeles City Council Rescinds Hollywood Hotel Approval
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Key Points

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This summary is reviewed by TRD Staff.
  • The Los Angeles City Council has rescinded its 2019 approval for Relevant Group's proposed eight-story, 114-room hotel at 6221 Selma Avenue in Hollywood.
  • This decision follows a lawsuit filed by Sunset Landmark Investment, a neighboring property owner, who argued the project was "piecemealed" and had significant air quality impacts under the California Environmental Quality Act.
  • The court ordered the city to invalidate its approvals by June 12, 2025, after finding the project might significantly impact air quality and too much time had passed for Relevant Group to comply with previous court orders regarding a revised environmental declaration.

The Los Angeles City Council has put the kibosh on an approved hotel proposal in the heart of Hollywood. 

Council members voted to formally rescind the 2019 approval of a proposal from Relevant Group to build a hotel at 6221 Selma Avenue, Urbanize Los Angeles reported. If completed, it would have turned more than 20,000 square feet of existing commercial space into an eight-story, 114-room hotel with a nearly 2,000-square-foot rooftop restaurant and 22,000 square feet of ground-floor retail.   

The pulled plans come after Sunset Landmark Investment filed a lawsuit against Relevant last year over the development. The developer was concerned that Relevant’s hotel would have been built atop the Tao Restaurant and its three-level parking garage, implying that the project had been split in two and was being “piecemealed” to reduce its perceived impacts under the California Environmental Quality Act. Sunset Landmark, as the owners of a neighboring property, filed the suit ostensibly out of environmental concerns. 

The court found that the project might have a significant impact on air quality. 

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Relevant worked for four years on a mitigated negative declaration that proved the development was environmentally sound. Sunset filed a motion asking the court to enter judgment in the case, arguing too much time had passed to comply with the court order. The court ordered the city to set aside and invalidate its approvals of the project in March 2025, with a June 12 deadline to comply.

It would’ve been Relevant’s latest hotel project in Hollywood in recent years following the completion of the Dream hotel in 2017 and the Tommie and the Thompson hotels in 2021. In 2023, Relevant turned the Tommie and the Thompson over to lenders following foreclosure on the properties. The 212-room Tommie has since been rebranded as the Hollywood Volume, now a Marriott Tribute Portfolio property at 6516 Selma Avenue, and the 190-room Thompson is under Hyatt leadership at 1541 Wilcox Avenue. 

The Dream, located at 6417 Selma Avenue next door to where the now-scuttled hotel would have risen, remains in Relevant’s portfolio. Chris Malone Méndez

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