Residents of Beverly Hills made a dramatic rejection of an ultra-luxury Cheval Blanc hotel on Rodeo Drive on June 2, 2023, thwarting a plan supported by Bernard Arnault, the world’s wealthiest individual and CEO of LVMH. The vote, prompted by neighborhood activism and union forces, prioritized community essence over an estimated $725–800 million in tax receipts, exemplifying a conflict between economic drive and standard of living. This saga, playing out on one of the world’s most famous streets, highlights the potential of local democracy to determine urban destinies. This article examines the details of the project, the intense resistance, and what the result says about luxury development globally.
The Ambitious Cheval Blanc Vision
LVMH, overseen by Bernard Arnault, sought to establish its Cheval Blanc brand in the U.S. with a 115-room Rodeo Drive boutique hotel. Worth $193–220 billion to Bloomberg and Forbes, Arnault had envisioned a luxurious addition to his portfolio of five upscale properties in Paris, the Maldives, and elsewhere. The 212,034-square-foot compound included a ninth-floor penthouse, a members-only club, a spa, three restaurants, retail areas, and 185 underground parking spaces. A public plaza was designed to mitigate its impact, but the 115-foot height raised eyebrows in a city celebrated for low-rise appeal. “Were designed to redefine luxury,” explained Beverly Hills’ main planner, Masa Alkire, pointing out its appeal to the super rich.
LVMH invested a whopping $400 million, including $245 million for a defunct Brooks Brothers building at Santa Monica Boulevard and Rodeo Drive. The conglomerate had spent $2.9 million on campaign efforts to win over voters’ approval, highlighting the project’s strategic significance. “This was their crown jewel,” said urban planner Elena Ruiz, who monitors luxury developments. The hotel sought to establish Beverly Hills as an international luxury center, complementing LVMH’s 15 Rodeo Drive shops, including Louis Vuitton and Dior.
Economic Benefits vs. Community Interests
Massive financial gains were promised by supporters: $725–800 million in tax receipts over 30 years, a $26–28 million up-front payment, and a 4–5% add-on to the city’s 14% hotel tax. An extra $2 million was committed to arts programs, and LVMH paid the $870,000 election expense. Mayor Julian Gold referred to it as a “once-in-a-lifetime” injection for schools, police, and fire departments, indispensable in a city where more than half of the revenue is derived from sales and hotel taxes. “The agreement was a money slam dunk,” Gold contended, regretting the missed chance to support essential services.
But residents threatened to undermine their 5.7-square-mile enclave’s character. Darian Bojeaux, a half-retired lawyer spearheading Residents Against Overdevelopment, described the nine-story building as “monolithic” for a village-like city. According to a 2024 Urban Studies Journal study, wealthier neighborhoods tend to value looks over profit, and Beverly Hills, with a $6.4 million median home value, was no exception. Concerns about increased traffic, heightened by a 2025 subway station, and obstructed views contributed to opposition. “It’s our home, not a brand to monetize,” declared Councilmember John Mirisch, the sole initial opponent.
Grassroots and Union Resistance
Unite Here Local 11, which represents 32,000 Southern California hotel and restaurant workers, spearheaded the resistance by gathering signatures for a referendum. They denounced the absence of affordable housing requirements for workers, a crucial concern in a city that prioritizes luxury developments. “Beverly Hills approves glitz but ignores our needs,” remarked union co-president Kurt Petersen. Bojeaux’s Residents Against Overdevelopment collected more signatures, contending that the proposed 115-foot hotel towered over current zoning restrictions. Their cause cast the development as an invasion of the “quaint village feel” loved by the 35,000 residents, in contrast to the city’s wealthy reputation.
The opposition’s victory over LVMH’s financial clout was stunning. “We out-organized a billionaire,” Bojeaux said in a local rally, according to a 2023 Los Angeles Times article. Their emphasis on livability traffic, size, and community identity spoke to voters concerned with over-development. A 2024 Journal of Community Development research points to how social movements in affluent neighborhoods tap into local pride to challenge corporate agendas, a strategy Beverly Hills perfected.
The Nail-Biting Vote
The May 30, 2023, special election had 32% of 22,160 registered voters cast ballots on two measures: zoning amendment permitting the size of the hotel and the development agreement. With a turnout of nearly 7,100, the “no” campaign won over supporters by 80 votes on zoning (3,591 to 3,511) and 125 votes on the agreement. “We saved our city’s soul,” Bojeaux said. LVMH’s Jessica Miller showed respect for the verdict, declaring, “We will not bring the hotel back in any form.” The slim margin documented a split community but confirmed the influence of neighborhood voices, even against a $400 million investment.
A History of Saying No
Beverly Hills has a history of saying no to ambitious projects. In 2016, voters defeated a 26-story tower near the Beverly Hilton, marking caution about over-scaled development. With 16 hotels seven luxury generating significant tax revenue, the city doesn’t lack economic vitality. “We’re not anti-development; we’re pro-Beverly Hills,” Mirisch explained, emphasizing safety and small-town charm. The 2023 vote aligns with this ethos, prioritizing livability over what real estate agent Jay Luchs called a “dream project other cities would kill for.”
What’s Next for Rodeo Drive?
LVMH still owns the 1.28 acres and houses 15 Rodeo Drive shops, including Fendi and Gucci. Though the hotel is demolished, other uses such as retail or office space are probable. “They’ll diversify to something that suits zoning,” says Ruiz, referencing LVMH’s strong roots on the street. The denial might scare off future megaprojects, sending a message to builders that community endorsement is not optional. A 2025 Urban Planning Review indicates such results pressure developers to offer smaller, community-focused proposals, possibly recasting the future of Rodeo Drive.
Lessons in Global Power in Local Contexts
The Cheval Blanc saga provides a case study for developers and urban planners. Despite $800 million in expected revenue and Arnault’s influence, community values won out. Beverly Hills’ election is part of a worldwide phenomenon in high-income neighborhoods, according to a 2024 City Journal report, where locals insist that developments honor local character. “It’s not about excluding wealth; it’s about defining home,” Bojeaux responded, deflecting images of Beverly Hills as a diamond-crusted bubble. The vote prompts developers to get involved with communities early, making sure the projects respect local agendas such as housing and roads.
Keeping a Village in the International Limelight
Beverly Hills, frequently misunderstood as a playground for Bentleys and Gucci, put heart into this vote. “We love the beauty of our city, not the brand,” Bojeaux underscored. The vote against underscores the more profound civic identity: a city of 35,000 prioritizing safety, beauty, and community over windfalls of money. While Rodeo Drive continues to dazzle the world, this vote guarantees its future will be crafted according to residents’ vision, not corporate zeal. It is a strong reminder that no matter where the world gets glitzier, local democracy still can determine the heart of a city, weighing progress against the appeal that makes it home.
