Dorff, a regular in real life at the hotel, will play a Hollywood bad boy actor who is living life up at the locale when his pre-teen daughter, played by Elle, steps into the picture.
Coppola said she is looking to shoot "an intimate story set in contemporary Los Angeles."
Filming will take place in June and July. The picture will also shoot in Italy.
The Chateau Marmont has remained a Hollywood hot spot for several decades, attracting patronage from the likes of U2, Naomi Watts, "Lost In Translation" star Scarlett Johansson and Lindsay Lohan.
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