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Stop-work order lifted, Hotel Laguna’s new restaurant, bar and lobby should be open by summer’s end

The original structure for Hotel Laguna was built in 1888, but the current structure was completed in 1930. (File photo by Mark Rightmire, Orange County Register/SCNG)
The original structure for Hotel Laguna was built in 1888, but the current structure was completed in 1930. (File photo by Mark Rightmire, Orange County Register/SCNG)
Erika Ritchie. Lake Forest Reporter. 

// MORE INFORMATION: Associate Mug Shot taken August 26, 2010 : by KATE LUCAS, THE ORANGE COUNTY REGISTER
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For years, the historic Hotel Laguna has been closed — eerily empty and dark as a bustle of visitors to Laguna Beach pass by the icon at perhaps the most prominent spot in town.

But behind the paper-covered windows, renovations on the ground floor of the hotel’s interior had progressed until earlier this year, and now its developers say it should soon be vibrant and alive again with a restaurant, kitchen, bar and lobby that evoke memories of a bygone era, but with a modern touch that celebrates the California coastal lifestyle.

City officials on Thursday, July 15, announced a work-stop order issued at the hotel in May had been lifted and the Honarkars can complete their project.

“People just see the outside, but we aren’t able to do anything to the exterior,” Hasty Honarkar, vice president of the Laguna Beach Company, said, assuring the hotel’s progress had been significant.  She is working on the renovation with her father, local developer Mo Honarkar.

  • The original structure for Hotel Laguna was built in 1888,...

    The original structure for Hotel Laguna was built in 1888, but the current structure was completed in 1930. (File photo by Mark Rightmire, Orange County Register/SCNG)

  • The original structure for Hotel Laguna was built in 1888,...

    The original structure for Hotel Laguna was built in 1888, but the current structure was completed in 1930. (File photo by Mark Rightmire, Orange County Register/SCNG)

  • Final touches such as these bar pendants are among some...

    Final touches such as these bar pendants are among some of the work that remained to be done during the renovation by the Laguna Beach Company at Hotel Laguna (Photo courtesy of Hasty Honarkar)

  • Art at Hotel Laguna’s ground level will rotate. Here is...

    Art at Hotel Laguna’s ground level will rotate. Here is a painting by LCAD graduate Michael Harnish that will be displayed. (Photo courtesy of Hasty Honarkar)

  • Bar lights at Hotel Laguna. (Photo courtesy of Hasty Honarkar)

    Bar lights at Hotel Laguna. (Photo courtesy of Hasty Honarkar)

  • A view of the restored main restaurant at Hotel Laguna....

    A view of the restored main restaurant at Hotel Laguna. The decor will reflect a nod to the 1920s, 30s and 40s (Photo courtesy of Hasty Honarkar)

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Inside, the Honarkars have been “peeling back the years” and exposing historic architecture, such as hand-painted beams that for decades were hidden by popcorn ceilings. The century-old hotel’s historic wall will be back with even more photos of Laguna’s past and its lobby will be restored to its original configuration, removing partitions set up by a previous hotel operator.

In the upcoming weeks, it’s just a matter of completing some finishing touches such as hanging wallpaper, light fixtures and adding furniture.

The stop order was issued after city inspectors said the Honarkars had worked on parts of the hotel’s exterior without the necessary permits. City inspectors have since visited the property and determined the work done on the hotel’s ground floor met city standards and requirements, officials said.

“Hotel Laguna is a historic landmark and an important asset to this community, and we are supportive of the end-goal of restoring Hotel Laguna,” Laguna Beach City ManagerShohreh Dupuis said in a statement. “At the same time, we will continue to make it clear that all the procedures and requirements applicable to the project are to be followed.”

Development in the seaside town often requires both city approval and the support of the California Coastal Commission, but because the remodel of the first-floor restaurant, lobby, bar and the kitchen is being done to existing spaces and doesn’t change how the spaces will be used, the state agency did not have to weigh-in, city officials said. The Honarkars obtained a building permit for the improvements from the city in 2019.

Ending the stop-work order means the Honarkars can finish the permitted work for passing fire and building inspections and to obtain a health department permit to reopen the ground floor.

City officials said Thursday they will conduct daily visits to the hotel to make sure no un-permitted work occurs.

And, before the restaurant, bar and lobby can be opened, a structural engineer will have to sign off that the hotel is safe to occupy.

“The decision by the city is vindication for me, my family and the entire team at the Laguna Beach Company, ” Mo Honarkar said in a statement. “We are thrilled to get back to work and complete the first-floor restoration and renovation. The final touches are expected to take just a few weeks to complete. Then, we will open the doors and join together with the Laguna community to honor the hotel’s storied history while celebrating its future.”

Hiring has started for the new venues.  A sign announcing the job opportunities is among the only signs of life on the outside of the historic hotel.

The restaurant will be run by Michelin star-winning Chef Craig Strong, who previously created dishes at the now-shuttered Ocean at Main and at Studio at the Montage Resort. Some staff for the new restaurant will come from another Honarker property, Terra Laguna Beach on the Festival of Arts grounds.

When the Honarkars acquired the hotel in January 2019, there were plans for a full historic remodel. But, those have now been put on hold, in part because of a challenge by a Laguna Beach couple, Mark and Sharon Fudge, who appealed the Honarkar’s local coastal permit to the California Coastal Commission in March.

In their appeal, the Fudges said city officials didn’t review the Honarka’s plans for bluff-top construction and the Honakars were making significant changes to the hotel’s ground floor.

Those items will be addressed at a later date, said Marc Wiener, director of Community Development for the city.

“COVID hit and we realized the complexities,” Hasty Honarkar said. “We decided to do it in phases and reopen the main level first and let the community come back into the hotel.”

Once they have a comprehensive plan for the exterior renovation, the Honarkars will have to appear again before the city’s Planning Commission. The overall plan has to include all interior and exterior renovations, including the lower-level conference room and the commercial spaces at the front of the hotel along Coast Highway.

The commission will have to decide if the project calls for city and/or coastal permits before any more construction is done. No date has been set for the Planning Commission review.

“Bringing Hotel Laguna back to life is just one way we plan on celebrating the unique lifestyle and unmistakable character that make Laguna such a special place,” Hasty Honarkar said. “We are grateful we can resume work.”