The hotel will renovate all its 91 rooms and suites as well as its famous champagne bar and restaurant.
Another major part of the renovation will focus on technology since most guests cannot receive cell phone reception due to the hotel's location.
The 12-acre property with its signature pink exterior lies north of Sunset Boulevard. During its 63 years in business, several legendary movie stars and high-profile politicians have stayed there including Grace Kelly, Marilyn Monroe and Richard Nixon.
According to the Los Angeles Times, more than 200 employees will be out of a job because of the lengthy makeover. There's no word on whether they will be hired back once the hotel reopens in October 2011.