LVMH Sells Only U.S. Hotel El Encanto Santa Barbara for $82.2M

French luxury conglomerate LVMH is selling its only U.S. hotel, the 90-room El Encanto in Santa Barbara, California, for $82.2 million. The buyers are a partnership including brothers Justin and Tyler Mateen and Culver Capital, who plan to manage the property independently, removing it from the Belmond chain acquired by LVMH in 2019. The sale price of about $900,000 per room aligns with recent resort transactions in coastal California, where limited land and strict regulations drive high valuations. This transaction reflects LVMH's strategic refocusing on core luxury segments and plans to reinvest in other areas, such as the upcoming Bvlgari Hotels & Resorts property in Miami Beach. The Mateen brothers have a growing portfolio of real estate and technology investments, including previous acquisitions in Los Angeles and Beverly Hills. Industry experts view the purchase as a long-term investment in a growing luxury hospitality market.