Residents of the city of Beverly Hills have voted against Moet Hennessy Louis Vuitton’s (LVMH) proposal to build a new Cheval Blanc luxury hotel on Rodeo Drive.

The special election was held, after Unite Here Local 11, a labour union and Residents Against Overdevelopment, a group led by former city council candidate Darian Bojeaux, collected signatures required to push the issue towards an election, Los Angeles Times reported.  

Last November, the 109-room hotel secured approval from the Beverly Hills City Council.

However, the opposition led by the trade union started the signature campaign against the hotel’s approval.

The special election was held by Los Angeles County Registrar of Voters, residents decided to vote against the Cheval Blanc hotel proposal which was projected to generate $778m in $28m in general fund $2m for art and cultural programmes, over the next 30 years.

LVMH’s proposal was defeated by a narrow margin.

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There are still 135 votes that are yet to be processed, pending signature verification.

Additionally, mail-in votes will also need to be processed. The registrar will reveal the final results on June 2.

The labour union alleged that the hotel development agreement did not have a provision set aside for affordable housing.

It also said that the hotel would be too large for the community and would add to traffic congestion.

Another criticism against the hotel proposal was its height. As per the current zoning rules limit the height of the buildings to three or four storeys.

But the height of the proposed Cheval Blanc hotel would be nine-storeys.

An LVMH spokesperson Jessica Miller was quoted by Women’s Wear Daily as saying: “Although some votes remain to be counted, it now appears that Measures B and C have fallen short by a narrow margin, overturning the results of a comprehensive, years-long review and approval process.

“We are proud to have worked with so many residents, civic leaders and business owners who supported this once-in-a-generation investment that would have delivered hundreds of millions of dollars in city funding and a beautiful gateway project for the Golden Triangle. 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.”