LAGUNA BEACH, CA - MAY 12: The Hotel Laguna operators have built up a sand berm, put out signs, and placed white lounge chairs to make it look like a private beach area in Laguna Beach on Monday, May 12, 2025. The Coastal Commission has taken issue with Hotel Laguna, and it's not the first warning the hotel has had about taking up a section of the popular beach. (Photo by Leonard Ortiz/MediaNews Group/Orange County Register via Getty Images)
Laguna Beach, California – A historic and upscale hotel in Laguna Beach is facing backlash — and possible fines — for allegedly trying to privatize a section of California’s coastline.
Hotel Laguna, a landmark on the Pacific Coast Highway for more than 125 years, has been reprimanded by the California Coastal Commission (CCC) for constructing a sand berm and placing signage on a public stretch of beach without the required permits. In a letter issued on May 8, the CCC said the hotel’s actions violate the 1976 Coastal Act, which protects public access to the state’s 1,000-mile coastline.
The commission’s notice accuses the hotel of discouraging public access by blocking off public trust lands with raised berms and hotel-branded lounge chairs. The CCC is demanding the hotel remove all unauthorized structures and signage by May 23 and provide photographic proof — or face a daily fine of $11,250.
“Emissions standards that are not aligned with market realities pose a serious threat to our business,” the hotel reportedly said in an internal email, according to SFGATE. But critics see it differently.
This isn’t Hotel Laguna’s first run-in with the state. According to the CCC, the hotel has been warned three times in the past about similar violations. Meetings with owner Michael Kluchin and legal counsel Sherman Stacey resulted in verbal and written agreements not to restrict beach access. Yet, enforcement staff allege the hotel has failed to follow through — and has not submitted the required Coastal Development Permit (CDP) applications for the current berm and signage.
The situation has stirred public outrage, particularly on social media, where photos and videos of the fenced-off area have circulated widely. One clip appears to show hotel staff asking beachgoers to vacate the groomed area, which features lounge chairs labeled “Hotel Laguna.”
Public comments on the hotel’s Instagram posts have been scathing. “Y’all don’t own any part of the California beach,” wrote one user. Another added, “The richies in OC always act like the rules don’t apply to them.”
Under California law, the public has the right to access the wet sand area below the mean high tide line — regardless of who owns the adjacent property. The CCC says Hotel Laguna’s attempts to limit access are a direct violation of this principle.
The hotel has not publicly responded to the commission’s letter.
