A Los Angeles developer cannot proceed with a luxury hotel project in the Santa Monica Mountains because of the city's environmental concerns, dealing the latest setback for an upscale hospitality property in the region.
Los Angeles Director of Planning Vincent Bertoni issued a letter on Sept. 6 rescinding the initiation of a general plan amendment for the planned 58-room Bulgari Resort Los Angeles in the Benedict Canyon neighborhood. The letter came after the City Council supported a measure last month to attempt to stop the approval of the high-profile 33-acre development that has drawn support and ire from celebrities, wealthy Angelenos, unions and environmentalists. A general plan amendment is required to allow for hotel development on the property.
Bertoni said in the letter the proposed hillside hotel was an "inappropriate" land use due in part to the negative environmental impact. A large number of trees would be removed from the site, and endangered species could be affected.
The city's planning department said in an emailed statement it reached the decision after considering deliberations at City Council meetings, along with information provided in an environmental impact report.
The Bulgari Resort has been in the works since October 2017, the letter said. A representative for Gary Safady — the project's owner and developer who is also a film producer — didn't respond to an emailed request to comment from CoStar News.
There are nine Bulgari hotels in operation globally. Amenities at the Los Angeles hotel were expected to include a high-end restaurant, a 10,000-square-foot spa, a gym, a cinema and a sushi bar, according to a statement. For-sale homes have also been part of the hotel's plans.
The Hollywood-Beverly Hills hotel market where the project is proposed is among the most desirable in Southern California. The market featured an average occupancy of 73.1% and an average daily rate of $344.73, well above the greater L.A. average of $203.78, according to CoStar data.
The Bulgari Resort is the second upscale hotel to lose its bid to secure approvals this year in greater L.A., a region known for its resistance to new development projects. In the city of Beverly Hills, the developers of a proposed upscale Cheval Blanc hotel lost a vote this summer to move forward with building the project.