Nightclub Owner Continues Suit Over LA Grand Hotel

Dennis Smith's ROME Nightclub lawsuit against the City of Los Angeles proceeds over the hotel's conversion into a homeless shelter.

Updated on Nov. 9, 2026 in Hospitality

Nightclub Owner Continues Suit Over LA Grand Hotel

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ROME Nightclub owner Dennis Smith continued legal action against the City of Los Angeles over the LA Grand Hotel's conversion into a homeless shelter. A Los Angeles judge dismissed most claims against the city in March, while an inverse condemnation claim was allowed to continue.

Why it matters

The dispute highlights how the conversion of a downtown hotel into temporary housing has affected nearby businesses and property interests. The outcome could shape how the city is held accountable for actions affecting private property in Los Angeles.

The lawsuit centers on a reported $100 million in city spending on the shelter, according to Sidenfaden, a figure not independently verified in the available record. No trial date has been publicly announced for the remaining inverse condemnation claim.

The players

Dennis Smith

Developer of ROME Nightclub, a rooftop nightclub on the LA Grand Hotel Downtown, who is pursuing legal action against the city.

Wei Huang

Owner of the LA Grand Hotel Downtown, who was sued by ROME Nightclub in January 2024.

The details

ROME Nightclub, a rooftop venue on the LA Grand Hotel Downtown developed by Dennis Smith, sued the hotel's owner, Wei Huang, in January 2024 over the conversion into a shelter. The separate suit against the city argues that its actions damaged private property interests, and the city's dismissal of most claims cited government immunity.

2021: The hotel was converted into temporary housing.
January 2024: ROME Nightclub sued hotel owner Wei Huang.
Mid-2024: Shelter residents were moved out of the hotel.
March 2026: A judge dismissed most claims against the city.

Legal Context

The inverse condemnation claim invokes California's doctrine allowing property owners to seek compensation when government action damages their property without formal taking. The dismissal of most other claims on government immunity grounds reflects how such suits against cities are often narrowed early.

Downtown Los Angeles businesses near the LA Grand Hotel may face continued uncertainty while the inverse condemnation claim proceeds. Residents should watch for any trial date, since the outcome could affect how the city handles similar conversions.

The takeaway

Property owners near city-run housing projects may have legal recourse even when broad claims are dismissed. Watching for narrower claims that survive early motions can help readers understand how such disputes develop.