Just over two years after it reopened under new management and a fresh identity, The Beacon hotel on Ocean Avenue has ceased accepting reservations, gone dark on booking platforms and left some international guests without compensation.
The hotel, formerly known as Hotel Shangri-La and rebranded in 2023 under the Sonder umbrella, had been positioned as a design-forward boutique property with prime Pacific views and modernized Art Deco interiors. But recent developments suggest the Santa Monica site may now be caught in a broader corporate shakeup as Sonder Holdings Inc works through financial struggles and operational downsizing.
The hotel’s website no longer lists rooms or contact details and instead redirects visitors to Marriott.com. Meanwhile, Google lists the rooftop Coco Bar, an underrated and popular cocktail lounge that opened with The Beacon’s relaunch and won fans for its ocean views and ambiance, as “permanently closed.”
No room bookings currently appear to be available through Sonder’s platform or major third-party travel sites. A customer service email obtained by one guest and posted to Yelp indicates that management of the property has changed and that existing reservations would no longer be honored.
“I made three bookings with Sonder The Beacon… one to stay in June, one in July and one in September,” wrote a reviewer from New Zealand, who booked the stays months ago on prepaid rates. “I received an email last week, only six weeks out from our stay, from the hotel saying that the management… has now changed and they could no longer fulfill our booking.”
The guest, who posted under the username AKLDMUMTO2, said a refund was issued but that approximately $350 was lost due to currency exchange rate differences. According to the review, Sonder customer service stated the company would not be liable for that loss. “Surely goodwill goes a long way in this instance. I guess not. What a shame,” the guest wrote.
An industry source told the Daily Press that the hotel had in fact been slated to shut on April 18. Sonder had been leasing the building to operate The Beacon, and once that lease was terminated, ownership moved to take back control. The same source said the hotel is now expected to reopen soon under a new name, The Eden.
This is confirmed by a notice that currently stands in the closed doorway that reads “Hotel temporarily closed. Reopening early June” and features new branding for The Eden, which at least suggests that major refurbishment won’t be taking place before the summer season ramps up.
However, it seems that many tourists were caught out by the sudden closure. The Daily Press spoke to a couple visiting Santa Monica from Pittsburgh who had originally booked a room at The Beacon and had been forced to cancel. They had wandered over to the hotel have a look at what the place was actually like. “The week before our arrival in Santa Monica, without even any notification, it just said ‘Canceled’ on the web page for reservations," they said. "I tried very hard to get a hold of somebody and I finally did, and they said that the Sonder was in the process of being sold and was changing hands on, I believe June 2 and they did not honor anyone's reservations,”
The Beacon’s abrupt pause comes at a time of significant upheaval for its parent company. On April 14, Sonder Holdings announced an $18 million capital raise, a debt restructuring deal and the implementation of $50 million in annualized cost cuts. Those measures are tied to Sonder’s broader effort to streamline its business and shift toward a leaner operating model.
The Daily Press reached out to the public relations division of Sonder for comment, but at the time of publication, had received no reply.
On April 29, the company disclosed that it had received a deficiency notice from the Nasdaq Stock Market for failing to file its annual 10-K report on time. Sonder has until June to submit a compliance plan or risk delisting. The company attributed the delay to internal accounting and control issues.
The Beacon’s building at 1301 Ocean Avenue has a long and storied history. Originally designed by architect William E. Foster and completed in 1939, it was hailed as an Art Deco landmark and was later designated a historic building by the city. In the early 2000s, the hotel underwent a $30 million renovation under the ownership of Tehmina Adaya, whose father had acquired the property in 1983.
In 2023, Sonder assumed control and reopened the hotel as The Beacon, updating its branding and interiors while pledging to maintain its architectural integrity. The company promised to transform the rooftop space with help from celebrity chefs and create three distinct concepts across its pool, restaurant and rooftop areas. At the time, Sonder executives framed the relaunch as a key piece of the company’s Southern California expansion.
That expansion now appears to be in question. Sonder’s recent financial filings and press releases, including its April capital raise and suggest a company in transition that is downsizing and consolidating its assets. It is not yet clear whether other Southern California properties are facing similar status changes.
As of this week, no signage at the hotel indicates closure, and its front entrance remains accessible. Calls to the front desk were not answered, and Sonder representatives have not responded to multiple media inquiries.
For guests with upcoming stays, the uncertainty is proving costly and stressful. “We are now left with nowhere to stay and prices that have skyrocketed,” the New Zealand guest wrote. “Is it fair that I am liable for this loss when it was not my fault?”
As of Friday morning, May 9, The Eden Santa Monica’s website was live at edensm.com/