Earlier this year, a potential sale of the same beach property to another prospective hotel developer fell through because of financing complications. The property had been listed for a sales price as high as $28 million following Thelen's 2007 death. The $19.5- million purchase price by Bolour/Provenance was financed, but terms were not disclosed. In addition to the Mermaid, the property includes the Poop Deck beer bar, the Good Stuff on the Strand restaurant, the Three on Pier Plaza, the Cantina Real restaurant, the Pier Surf Shop and Tiki Mon Creamery & Café.

The Bolour/Provenance joint venture is just beginning its land entitlement process with the city of Hermosa Beach, which straddles a quieter, gentler era of Southern California beach city ambiance with upscale development. Current plans call for the Bolour/Provenance construction to begin in 2015, with a completion date targeted for 2016.

The joint venture is the first for Bolour and Provenance. If it opens, the hotel will mark Provenance's entry into the Los Angeles area. The Hermosa Beach land acquisition effort was led by Gordon Sondland, chairman and CEO of Provenance Hotels; Bashar Wali, president of Provenance Hotels; and Mark Bolour, CEO and principal of Bolour.

“We are thrilled to partner with Bolour to acquire this irreplaceable asset and excited to expand our presence into California,” said Wali in a prepared statement. “This project is tailor-made for our destination-driven approach to design, guest service and the overall hospitality experience, and I am confident that we will create a much sought-after property here.”

“With this acquisition, we are pleased to deepen our investment in the community and further ally our efforts with the forward-thinking city leaders, local business owners and residents who are laying the groundwork for the continued evolution and success of Hermosa Beach,” said Mark Bolour in a statement. “The future is bright in this city and, in our opinion; there is no better time or place to be focusing our resources and energy than right now, here in Hermosa.”

Sondland said the hotel venture may be “the first of what we hope will be many future projects together.”

As previously reported by GlobeSt.com, the iconic Dive n' Surf shop in nearby Redondo Beach has refinanced its property and plans to expand its corporate offices. The surfing landmark, home to the first wetsuit, was contemplating a move if it couldn't obtain the financing.