Beverly Hills Residents Went Up Against The World’s Richest Man To Oppose A Luxury Hotel. They Just Won

Beverly Hills voters have defeated plans for a luxury hotel on Rodeo Drive, which was backed by the world’s richest man.

In certified election results released Friday, opponents of the hotel won by 80 votes. With 32% of voters turning out, the final vote count was 3,591 to 3,511 on the measure that would have changed zoning changes to allow for the building of Cheval Blanc.

Last year, the Beverly Hills City Council approved the development of Cheval Blanc Beverly Hills, a hotel planned by LVMH, a luxury conglomerate owned by Bernard Arnault (Forbes estimates his net worth at $220 billion ).

But residents and labor union members challenged city hall’s decision and put the issue before voters in a special election held last Tuesday. While proponents of the hotel said it would bring in millions of dollars in tax revenue, opponents said the hotel would bring congestion and impact the quality of life in the neighborhood.

What we know about the hotel plans

Another view of the proposed Cheval Blanc hotel shows the proposed elevation changes.

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Courtesy Beverly Hilles

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The final plans submitted to the city had this description of what would be a 212,034- square-foot multiple-use building, with a max height of 115 feet along North Beverly Drive.

• A luxury hotel with 109 guest rooms, including a penthouse, a private club offering facilities for social and recreational purposes, restaurant and retail uses, wellness center and spa.
• 185 vehicle parking spaces in three subterranean parking levels.
• More than 45,000 square feet of open space, including a publicly accessible pedestrian plaza.
• 4,760 square feet of outdoor restaurant.

Grassroots effort to oppose 

Darian Bojeaux, a semi-retired attorney who lives in Beverly Hills, started the political action committee Residents Against Overdevelopment to oppose the proposed hotel. She helped gather signatures needed for a referendum, calling and emailing her neighbors.

“We have a lot of people in the city with good values that care about our environment and our quality of life,” Bojeaux said, “and I'm really glad we were able to activate them because a lot of people were discouraged and they said, ‘Oh, we're never gonna win against that much money.”

“I think the message is that we can preserve our city and we don't have to lay down for developers,” she said.

A loss in tax revenue for the city 

Ahead of the official tally, Beverly Hills Mayor Julian Gold said he was disappointed with how election results appear to be shaking out.

“It would've been a remarkable addition to Rodeo Drive,” Gold said. “Rodeo Drive is already the seat of luxury and this luxury hotel fit very well with that.”

Gold says the city would have gotten $778 million in tax revenue over 30 years from the hotel, as well as $28 million in a one-time payment.

“The financial structure of the deal was designed in a way that would provide lasting financial benefit to the city for decades to come to help us support our police and our fire, our schools,” Gold said. “It's probably a once in a life opportunity that has been lost.”

What’s next

Bernard Arnault heads the French luxury group LVMH which was seeking to build a luxury hotel on Rodeo Drive in Beverly Hills. Earlier this year the group — which includes brands like Hennessy, Louis Vuiton, Dior, Moët & Chandon, Givenchy and more top lux brands — announced record high sales.

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Stefano Rellandini

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AFP via Getty Images

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Gold says LVMH still owns the land and it remains to be seen what the company will do with the site.

In a statement, a spokesperson for LVMH didn’t address what the future holds for the site, but said, “If the final vote count confirms the voters’ rejection of our project, we will respect the outcome, and will not bring the hotel project back in any form.”