LVMH Sells El Encanto Hotel in Santa Barbara for $82.2 Million
French luxury giant LVMH has agreed to sell its only US hotel, the El Encanto in Santa Barbara, California, to a partnership led by brothers Justin and Tyler Mateen and Culver Capital for $82.2 million. The 90-room property, located northwest of Los Angeles, will be managed by its new owners.
Tyler Mateen described the purchase as acquiring 20% of the class A luxury hospitality market in Santa Barbara, which they believe has growth potential. The sale price per room is approximately $900,000, comparable to other recent resort transactions in coastal California.
Alan Reay, president of Atlas Hospitality Group, noted that the high price reflects the challenges of developing new properties in the area due to strict regulations and limited land availability. “It may look expensive today, but 10 or 20 years from now it looks like a good deal,” Reay said.
The new owners plan to manage the property themselves, ending its affiliation with the Belmond chain, which LVMH acquired in 2019. Garrett Cayton of Culver Capital praised El Encanto, saying it “embodies the essence of California living and offers an experience like no other hotel on the Central Coast.”
The Mateen brothers have a growing portfolio of real estate and technology investments, including recent acquisitions such as a shopping center on Hollywood Boulevard for $69 million and an office and retail complex on Rodeo Drive in Beverly Hills for $211 million. Justin Mateen is also a co-founder of the dating app Tinder.
LVMH plans to expand its hotel presence in the US, with Bvlgari Hotels & Resorts set to open a hotel in Miami Beach, Florida, in 2028 [1].
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