Introduction to LVMH’s Hotel Sale
LVMH Moët Hennessey Louis Vuitton SE, the French luxury conglomerate behind some of fashion’s biggest brands, is selling its only hotel in the U.S.
El Encanto, a 90-room luxury hotel in Santa Barbara, is being purchased by a joint partnership between brothers Justin and Tyler Mateen and Costa Mesa-based Culver Capital for $82.2 million, Bloomberg reported. The sale price works out to $900,000 per room.
The Mateen Brothers’ Lodging Play
It’s part of a larger lodging play in the area for the Mateen brothers. They are looking into snapping up 20 percent of the class A luxury hospitality market in Santa Barbara, which they view as “a growing market,” Tyler Mateen, CEO of Cannon TTM, told Bloomberg.
“We will be pouring love and resources into this iconic property to continue that legacy and ensure that it remains a top destination for visitors from around the world and down the block,” Justin Mateen, a co-founder of dating app Tinder, said in a statement.
New Ownership and Management
The new owners plan to manage the property themselves. It was previously owned and operated by the Belmond hotel chain, which LVMH bought in 2019.
The Mateen brothers have been buying properties across Southern California over the past year and ramped up their actions in the past month. In June, they paid $69 million for the Hollywood Galaxy shopping center located on the Hollywood Walk of Fame. In August, they dropped $211 million for Wilshire Rodeo Plaza, an office and retail complex on Rodeo Drive in Beverly Hills.
Investment Strategy
“I’ve always been a contrarian investor,” Justin Mateen told The Los Angeles Times after the Hollywood Galaxy purchase. “Whether it’s startups, public markets or real estate, I take the long view and hold through cycles for forever. While others are pulling back from cities like L.A., we’re doubling down. Its resurgence feels inevitable.”
LVMH’s Hotel Portfolio
In addition to the Belmond brand, LVMH also owns and operates Cheval Blanc hotels and Bvlgari Hotels & Resorts around the world. Bvlgari Hotels & Resorts plans to open a hotel in Miami Beach, Florida, in 2028, according to a spokesperson’s statement to Bloomberg.
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Conclusion
The sale of El Encanto to the Mateen brothers marks a significant transaction in the luxury hospitality market in Santa Barbara. With their plans to manage the property themselves and pour resources into it, the hotel is expected to remain a top destination for visitors. LVMH’s decision to sell its only hotel in the U.S. is part of its larger strategy, and the company continues to expand its hotel portfolio around the world.
FAQs
Q: Who is buying El Encanto hotel in Santa Barbara?
A: The hotel is being purchased by a joint partnership between brothers Justin and Tyler Mateen and Costa Mesa-based Culver Capital.
Q: How much did the Mateen brothers pay for the hotel?
A: The sale price was $82.2 million, which works out to $900,000 per room.
Q: What are the Mateen brothers’ plans for the hotel?
A: They plan to manage the property themselves and pour love and resources into it to continue its legacy as a top destination for visitors.
