HOLLYWOOD, Calif. — It has been a popular hangout for the rich and famous for decades, but the swanky Chateau Marmont is struggling like the rest of the hospitality industry because of the coronavirus pandemic.

Now, the property owner is converting it into a members-only hotel. 

LA Times business reporter Hugo Martín looked into what’s next for the famed hotel, and its history as a playground where celebrities let loose.

Chateau Marmont, located in West Hollywood, resembles a French castle. It’s on a hill, and inside it has arched ceilings and red tile floors. It has been around since the late 1920s. It originally opened up as an apartment, and then converted into a hotel.

Because of its design and look, it has a very French and European feel to it. It has been popular with the Hollywood crowd for a long time. By 1932, the man who built Chateau Marmont sold it because he had lost so much during the Great Depression.  

In 2020, as the country faces another financial crisis more changes are coming for the Chateau Marmont.

“So when the pandemic hit in March, the owner, André Balazs, announced that he was going to lay off most of his staff, and every other hotel was struggling as well. And, just last week, he announced he was going to turn it into a members only hotel,” Martín said.

A spokesperson for Balazs said members will own shares of the property and pay regular fees to cover management costs. In exchange, they’ll get the use of a private dining area, a personal butler and the freedom to leave their belongings and come and go during extended days.

“The owner announced as it is, 70 percent of his clientele at the hotel are returning guests. He figured, ‘why not make it exclusive to them?’ Another reason why he brought it up was because of the pandemic. He said safety is a big issue and that his guests were worried about who’s coming and who’s going. If there’s a set number of exclusive members at the hotel, they’ll feel a little bit more secure that you’re not just getting random people coming in and out,” said Martín.

Health concerns aside, there are other reasons why the rich and famous in Hollywood like their privacy with these exclusive clubs. This new “members only” perk will give them a chance to hideout from society while helping the economy. 

“You sort of protect yourself a little more. You don’t have a lot of the issues that you would have with the regular hotel. I mean, you got labor issues and then you have to deal with the cycles of the economy, which right now we’re dealing with the worst. So if you can get enough people to buy into the membership, I think you are protected from these sort of cycles that you see in the economy a lot,” added Martín.

The owner of the Chateau Marmont, André Balazs also owns the Chiltren Firehouse in London and the Mercer Hotel in New York City. Balazs has owned the Chateau since 1990, and when he announced he was going to make it into a members only he said he was probably thinking of doing this with some of his other properties.

A spokesperson for Balazs tells the Times that a restaurant and some common areas will remain open to the public after the hotel converts to “members only.”