Summary:
- French luxury group LVMH sold its only U.S. hotel, the 90-room El Encanto in Santa Barbara, to Tinder co-founder Justin Mateen for $82.2 million.
- The seven-acre property includes 90 bungalows and suites, Pacific Ocean views, a pool, spa, bikes, fitness classes, wellness facilities and 10,000 square feet of event space. It is now part of the Leading Hotels of the World portfolio.
- The new owners reportedly plan to invest up to $40 million in improvements.
FRENCH LUXURY GROUP LVMH Moët Hennessy Louis Vuitton recently sold its only U.S. hotel, El Encanto in Santa Barbara, California, for $82.2 million. The 90-room property was acquired by Tinder co-founder Justin Mateen and his brother Tyler Mateen, along with Culver Capital.
The seven-acre hotel, now part of the Leading Hotels of the World portfolio, has 90 bungalows and suites with Pacific Ocean views, a pool, spa, bicycles, fitness classes, wellness facilities and 10,000 square feet of event space, El Encanto said in a statement.
“We look at it as we’re buying 20 percent of the class A luxury hospitality market in Santa Barbara, which we believe is a growing market,” Tyler Mateen told Bloomberg.
In addition to the purchase price, the new owners plan to invest up to $40 million in improvements, according to the Los Angeles Times. Tyrone McKillen will lead design and construction, with landscaping by Mark Rios. The hotel will remain open during renovations.
“The American Riviera rivals the best coastlines in Europe but is less than 90 minutes from Los Angeles,” Justin Mateen said. “El Encanto was an exclusive retreat during the golden era of Hollywood. We’ll invest the resources needed to continue that legacy.”
“El Encanto has a unique character unlike any property I’ve visited in California,” Tyler Mateen said. “We intend to highlight its history in every part of the guest experience.”
Justin Mateen also told the Los Angeles Times that El Encanto "has a lot of California’s rich history and could be one of the nicest hotels in the U.S. The bones and the structure are irreplaceable."
The hotel is known for its Spanish Colonial Revival architecture and long association with celebrities and political figures, including Hedy Lamarr, Clark Gable, Carole Lombard, Franklin Roosevelt and John Kennedy Jr. LVMH acquired it in 2018 through its purchase of Belmond.
The New York Post reported that Brunei’s Sultan Hassanal Bolkiah is exploring a purchase of the Pierre Hotel in New York City.
