L’Ermitage Beverly Hills, a symbol of luxury and exclusivity, opened its doors in the mid-1970s on Burton Way in the heart of affluent Beverly Hills, California. The hotel was conceived and developed by Polish Jewish immigrant brothers Severyn and Arnold Ashkenazy. Their vision was revolutionary: to create an all-suite hotel featuring spacious accommodations with kitchens, dining rooms, and elegant bathrooms—an offering that was unmatched in the U.S. hospitality market at the time. The name “L’Ermitage” was inspired by the Hermitage Museum in St. Petersburg, signaling the property’s unique blend of high-end hospitality and art appreciation. Arnold Ashkenazy, an avid art collector, decorated the hotel with artwork from masters like Vincent van Gogh and Pierre-Auguste Renoir, appealing to an elite clientele desiring both comfort and culture.
From its inception in 1975, L’Ermitage pioneered intimate luxury with meticulously appointed suites averaging 805 square feet, offering marble bathrooms, private balconies, and dedicated spaces for sleeping, dressing, and relaxing. The hotel quickly became known for fine dining, exceptional service, and exclusivity, securing a place as one of the only Mobil Five-Star and AAA Five-Diamond-rated hotels in California by the 1980s. Its reputation attracted celebrities and entertainment moguls, with notable guests like Elizabeth Taylor and Laurence Olivier.
Management and Project Heads
The Ashkenazy brothers led the hotel’s early development until the late 1980s, when their luxury hotel empire faced financial challenges, leading to a Chapter 11 bankruptcy filing in 1986. Following a period of ownership changes—including acquisition by Raffles Holdings Ltd. in 2000—the hotel entered a new phase under the ownership of Malaysian financier Jho Low in 2010. Low acquired L’Ermitage for approximately $46 million. Under his ownership, the hotel rebranded as part of the Viceroy luxury collection and underwent a $37 million renovation completed in 2016. This renovation modernized the suites, public areas, and the renowned [L ermitage Beverly Hills restaurant], enhancing the hotel’s elite status.
Following the U.S. government’s seizure of the property as part of the 1MDB scandal investigations, EOS Investors LLC, a New York-based firm specializing in hotel real estate, purchased the hotel for $100 million in 2020. EOS Investors has since managed the property, overseeing its continued operation as a standalone luxury destination. The decision makers at EOS Investors, such as Tom Burns and Jonathan Wang, emphasize strategic investment to maintain the hotel’s legacy while fostering future growth.
Controversies and Scandals
L’Ermitage’s otherwise glamorous history became entangled in significant controversy due to its ownership by Jho Low, a politically exposed person (PEP) implicated in the massive 1Malaysia Development Berhad (1MDB) embezzlement scandal. Low’s acquisition of the hotel was identified as a key element in laundering funds misappropriated from the Malaysian state fund. U.S. federal authorities seized the hotel in 2016 during their crackdown on assets purchased with illicit proceeds tied to international corruption and bribery.
The scandal revealed intricate methods of asset concealment, including layered ownership through offshore shell companies, which obscured the true source of funds and ownership structure. The controversy is further amplified by reports of inflated property valuations coupled with high-volume, suspicious financial transactions to legitimize illicit proceeds.
Money Laundering Activities
The laundering tactics linked to L’Ermitage’s ownership involve complex layering through offshore entities and shell companies designed to obscure the property’s true beneficial ownership. Low’s purchase was financed with funds diverted from 1MDB, with transactions structured to avoid detection through cash layering and over-invoicing of renovations.
These methods are generally used in luxury real estate to shift illicit funds into high-value tangible assets, thus laundering money while preserving economic value. The $37 million renovation post-acquisition further provided an opportunity for value enhancement, masking the origins and flow of funds.
International Links and Benefiting Countries
While headquartered in the United States, the ownership and funding trail of L’Ermitage Beverly Hills reveals significant international ties. Malaysia is central, as the origin of illicit funds involved in the acquisition. Offshore financial centers likely served as intermediaries for transactions, facilitating anonymity and financial secrecy. The U.S., while ostensibly the country of the asset, directly benefited from increased foreign capital inflows into its luxury real estate market, despite the political and regulatory shortcomings that allowed such ownership to occur.
Regulatory Actions and Legal Proceedings
In response to the 1MDB scandal and related international cooperation, U.S. agencies including the Department of Justice (DOJ) and Financial Crimes Enforcement Network (FinCEN) intervened. The property was seized by the U.S. government in 2016 under asset forfeiture laws aimed at recovering property bought with stolen funds. It was subsequently put to auction, leading to the sale to EOS Investors LLC in 2020.
Legal proceedings against Jho Low and accomplices are ongoing, with complex international litigation. No fines or legal sanctions have been publicly levied against the current owner EOS Investors, who acquired the property in good faith under U.S. government supervision.
Public Impact and Market Reaction
The scandal surrounding L’Ermitage has had noticeable effects on investor confidence and market perception in the Beverly Hills luxury real estate sector. Despite being a landmark hotel, uncertainty about ownership transparency and associated financial crimes has influenced market trust and elevated concerns about regulatory weaknesses.
However, prices and demand for luxury properties have remained resilient due to the desirable location and high-quality amenities, including its celebrated [L ermitage beverly hills rooftop] pool and spa, and exquisite dining options like the renowned [L ermitage Beverly Hills restaurant]. Consumer reviews such as [L’ Ermitage Beverly Hills reviews] often emphasize the exceptional experience, citing spacious [l’ermitage beverly hills rooms], excellent [l’ermitage beverly hills room service], and the quality of [l’ermitage beverly hills breakfast].
Current Status and Future Outlook
Today, L’Ermitage Beverly Hills operates as a standalone luxury boutique hotel with approximately 116 all-suite accommodations. The removal of the Viceroy affiliation in 2021 marked a return to its original branding, emphasizing exclusive service and privacy. Renovations completed as recently as 2016 ensure contemporary luxury standards.
Questions such as [Are there suites available at L’Ermitage?] and [Does L’Ermitage have accessible rooms?] reflect its commitment to a diverse clientele, with accessible suites and numerous luxury options available. With its [l ermitage beverly hills prices] positioned at the high end of the market, the property maintains status as a premier destination for affluent travelers.
Looking forward, industry experts note that regulatory scrutiny on luxury real estate linked to politically exposed persons is intensifying globally. L’Ermitage’s complicated history may serve as a catalyst for tougher due diligence standards to enhance the sector’s transparency.
