Small California beach city torn apart over fate of this 37-room historic family-owned hotel

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Battle lines have been drawn over the demolition and planned rebuild of an historic hotel in Carmel-by-the-Sea.

The family-operated Hofsas House hotel, a 37-room inn with views of the Pacific Ocean, has stood since 1949, but has now sparked a fierce proxy battle between two groups of neighbors between those who want to modernize and others who want to preserve history.

One group wants to have the building torn down in favor of a brand new modern luxury hotel - something new for the quaint seaside town known as the Carmel Legacy Hotel.

The new building would be the largest construction project to take place in the town since the 1960s.

But there is another group who are directly opposed to those in the town, who want to see the building preserved for posterity, complete with its nostalgic and historical charm, known for its unique pink exterior.

The conflict has only intensified in recent months after third-generation hotel owner Carrie Theis won unanimous approval in April from the city's planning commission to demolish and rebuild the Bavarian-themed hotel.

But just as Theis had been gearing up for the demolition, Neal Kruse, co-founder of the Carmel Preservation Association, filed an appeal to block the razing of the building and its rebuild, with the intention of protecting Carmel-by-the-Sea's traditional architecture. 

Kruse's appeal has stalled in the final approval stages, frustrating Theis and her family, who were preparing for the hotel to be demolished later this year or in early 2025.

Theis pointed out that the new hotel to replace the Hofsas House would be similar in size and scale to the current property. 

'I didn't ask for more rooms to make more money, because I knew I didn't want to push the envelope. I didn't,' Theis said to SFGate about her plans for the new hotel. 

'I wanted to do everything in the box. And I don't appreciate that people don't understand that.' 

Some of the building's planned for demolition were constructed in the 1940s, 50s and 60s - and are long past their usefulness.  

The association said that it was committed to 'safeguarding the charming traditional architecture of Carmel-by-the-Sea.'

Kruse and his organization argue that demolishing Hofsas House would erode part of the unique character that defines Carmel.

'I want you to remember what they did and that will tell you what they feel about what the residents need to know about what's coming,' he said, airing his concerns.

Theis said she was 'not happy' about the appeal, which has now put the family project on hold. 

Several sitting on Carmel City Council want to see the project proceed.

'I’ve been to that hotel. It’s a labyrinth. It’s difficult. It’s not fixable. I think this will be a great addition to the city when it's finished,' Councilmember Karen Ferlito said. 

'As I see more and more luxury hotels being built in the peninsula, I think this is a much-needed project. We need people who stay here rather than day-trippers who stay out of town.'

The possible rebuild of Hofsas House is one of a number of other large-scale projects in Carmel that are taking place.

Kruse has described it as a period of 'absolute construction hell' disrupting the serene atmosphere of affluent oceanfront community.   

As the debate rages on, the future of Hofsas House is emblematic of the larger question facing Carmel on how to balance growth and modernization with the preservation of its unique historical charm.