Bernard Arnault, CEO and chairman of LVMH Moet Hennessy Louis Vuitton LVMHF, has decided to scrap his plans to build a luxury hotel in Beverly Hills.
Beverly Hills residents voted against the project, Bloomberg reported on Friday. Although some votes still need to be counted, LVMH said that two measures on the Cheval Blanc Beverly Hills project fell short by a “narrow margin,” company spokesperson Jessica Miller said in a statement.
“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,” Miller said.
The official report showed 50.9% of voters rejecting the hotel project — a narrow 123-vote margin over the supporters. The Los Angeles County registrar’s office reported that the final results will be certified on June 2.
Arnault, the world’s richest man, had planned to build a luxury boutique hotel and private members’ club on Rodeo Drive in Beverly Hills.
According to Bloomberg, the hotel had projected that taxes and other payments would generate about $800 million over 30 years for Beverly Hills. Critics, however, said that the construction would obstruct views and contribute to traffic congestion.
Last month, the fashion giant became the first European company to surpass the $500 billion market value. The value of LVMH has boosted the wealth of Arnault, whose fortune stands at around $212 billion.
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Image and article originally from www.benzinga.com. Read the original article here.