Beverly Hills Gives Cheval Blanc Project Final Approval

BEVERLY HILLS, CA — Beverly Hills City Council on Tuesday gave the massive Cheval Blanc project its final clearance, promising the city another luxury hotel.

The Cheval Blanc Hotel, which would not be finished until at least 2025, would include up to 115 guest rooms, a pool deck, spa, restaurants and a private club, according to city documents. Construction could start as early as late 2022. The 1.24-acre property is situated between Rodeo Drive, Beverly Drive and South Santa Monica Boulevard.

The city in September voted to conditionally approve the project pending approval of a final development agreement, which was reviewed and accepted Tuesday.

"We're very fortunate to live in this luxury environment," Vice Mayor Julian Gold said. "This city has been very, very blessed in that we've had so many years of prosperity, but I think that we have to maintain that. We have to do stuff that continues to preserve our place as a desirable, luxurious place to be [that] people want to come to. We have to be aspirational."

The development agreement sets out a timeline for the project, requiring penalties if the hotel is not completed on time, and a number of other financial terms.

As discussed in September by multiple council members, the development agreement includes a significant public benefit in the form of $26 million paid to the city, an arts and culture contribution in the form of $2 million and a five percent surcharge on guests' taxes.

Developers offered a window into projected room rates at the exclusive hotel, which start over $1,000 per day and go up to $20,000 per day for penthouse rooms, according to city staff.

Affordable housing was a key topic of conversation at Tuesday's meeting, especially for council member John Mirisch, who ultimately voted no on the project for a number of concerns. Mirisch hoped to see additional revenue in the agreement linked directly to funding affordable housing. Mirisch also took issue with the building's height which required special clearance and a perceived lack of transparency.

A representative of the UNITE HERE Local 11 union also asked for money to be set aside to help workers afford housing in the city.

"In general, I do like and I support the idea of an LVMH hotel, but the devil is always in the details," Mirisch said. "LVMH is a brand, and I understand from their perspective they are all about branding. Of course they could care less about affordable housing or the most vulnerable among us. It is a luxury brand. ... But we should care. It's our job to care. LVMH is a brand, they're a brand. We are a community. And I'm afraid that we are confusing and conflating the two, and making ill-advised decisions aimed at strengthening the brand of Beverly Hills."

City staff responded that future city councils will be able to spend the money from the project however they choose. Gold pointed to the fact that there were no other dissenting public commenters.

Read More:

• Plans For Luxury Cheval Blanc Hotel Move Ahead In Beverly Hills
• City Council Could Clear Cheval Blanc By Tuesday