BEVERLY HILLS—The Dalian Wanda Group, a Chinese multinational developer, has won the approval from the Beverly Hills City Council to develop a $1.2 billion hotel-and-condo project in Beverly Hills.
The Beverly Hills City Council voted 4-1 to approve the billion-dollar development project on Santa Monica Boulevard, which will include two towers. One tower will be 13 stories tall and the other tower will be 15 stories tall. They will hold 134 hotel rooms and 193 condominiums.
Last month, the Wanda Group negotiated a tentative development agreement with the city of Beverly Hills to pay upfront fees of $60 million, instead of $30 million. The company also agreed to pay an additional five percent surcharge of gross room revenue.
“I would like to thank all the city leaders and residents who supported One Beverly Hills, and helped shape what will be an iconic property at the western gateway to Beverly Hills,” said Rohan a’Beckett, Deputy GM of Wanda Beverly Hills Properties, in a statement. “Our entire team is extremely excited to finally start construction on this long-delayed project and provide new financial public benefit that will contribute to the quality of life for the entire community.”
Wanda Group’s owner Wang Jianlin and Beny Alagem, owner of the Beverly Hilton were both fighting against each other’s projects for the past 2 years. Alagem planned to construct a 26-story condo tower alongside the Hilton, but Beverly Hills voters rejected that plan. Alagem spokesperson, Marie Garvey, told The Hollywood Reporter that Alagem may challenge the city’s decision to approve Wanda’s plan.
“We continue to have serious concerns about this severely flawed access plan on Santa Monica Boulevard and the location of the loading dock across from the entrance of the Beverly Hilton,” Garvey said. “Now that the project is approved we will continue to weigh our options.”
Beverly Hills Mayor John Mirisch told the Los Angeles real estate website The Real Deal that the agreement might be “the most lucrative development agreement the city has ever signed.”
The project is expected to break ground in 2017 and open in 2020.
