Bernard Arnault, the world’s richest man, is to scrap a plan to build a luxury hotel in Beverly Hills after residents in the wealthy Californian city appeared to vote against the project.
With some votes still to be counted, LVMH Moet Hennessy Louis Vuitton said two measures on the Cheval Blanc Beverly Hills project fell short by a “narrow margin", spokeswoman Jessica Miller said on Friday.
“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,” Ms Miller said in a statement.
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Mr Arnault, chairman of the French luxury group LVMH, planned to build an ultra-luxury boutique hotel and private members’ club on Rodeo Drive.
Supporters of the hotel project said taxes and other payments would generate about $800 million over 30 years for Beverly Hills, while critics said the building would obstruct views and contribute to congestion on the roads.
“The election results – if they hold – show that Beverly Hills is more than just a brand to be monetised. It’s our home,” John Mirisch, a city council member who opposed the project, said in an email on Friday.