French luxury fashion conglomerate LVMH Moët Hennessy Louis Vuitton has sold its only U.S. hotel property for more than $900,000 per key.
Parent company of prominent brands Christian Dior, Louis Vuitton, Fendi and others, LVMH has offloaded the historic El Encanto Hotel in Santa Barbara, California, according to a release obtained by Hotel Dive. Founder of online dating app Tinder Justin Mateen and his brother, Tyler Mateen, in partnership with Culver Capital, acquired the 90-room luxury hotel for $82.2 million.
The hotel has been part of the LVMH portfolio since 2018 when the company acquired the property’s then-owner, luxury travel firm Belmond. The $2.6 billion deal added 46 hotel, rail and river cruise experiences in 24 countries to the luxury giant’s portfolio, Retail Dive previously reported.
Now, seven years later, the Mateen brothers are bringing the hotel under the Leading Hotels of the World portfolio, per the release. The brothers will also pour up to $40 million into improvements at the 1918-opened El Encanto, they shared with Hotel Dive.
“We will bring its rich history and timeless allure to the forefront of every aspect of the guest experience,” Tyler Mateen said in a statement. The new owners plan to upgrade everything from the property’s spa offerings to its culinary concepts and garden landscaping. The updates will be introduced gradually, and the hotel will remain open during the transition, according to the owners.
Local developer Tyrone McKillen will oversee the design and construction management for the improvements, while international landscape architect Mark Rios will head the landscape architecture updates.
The transaction represents the Mateen brothers’ first hotel acquisition, though they are limited partners in other real estate holdings, they shared. California has the largest GDP in the country, and the fourth-largest in the world, making it a desirable market to invest in, the brothers told Hotel Dive.
LVMH could not be reached for comment on the sale.
