Under the new deal, 348 hotel rooms and the Grand Ballroom, Palm Court, Oak Room and Oak Bar will remain open.
Plaza Hotel revamp curtailed
Friday, April 15, 2005 Posted: 11:44 AM EDT (1544 GMT)
NEW YORK (Reuters) -- The planned renovation of Manhattan's famed Plaza Hotel, which raised howls among New Yorkers enamored with its history, will be sharply curtailed under a compromise with new owners unveiled on Thursday by the city's mayor.
For nearly a century, the Plaza has received celebrities, diplomats and the very wealthy. It was a hangout for literary giants like Ernest Hemingway and Dorothy Parker, and was the home of precocious children's book character Eloise.
New owners Elad Properties had planned to convert it largely to shops and apartments, but in a deal brokered by New York Mayor Michael Bloomberg, the company will now retain almost half the hotel rooms and its lavish public spaces.
The tentative deal between Elad and union workers will save at least 350 of 900 jobs at the hotel that overlooks Central Park, the mayor said.
Israel-based Elad bought The Plaza last year for $675 million and planned to spend $350 million to put in shops, sell condominiums and close all but 150 of its 805 rooms.
Under terms of the deal, the Plaza will close for renovations for up to two years. When it reopens, it will have 348 hotel rooms and its Grand Ballroom, Palm Court, Oak Room and Oak Bar will remain open.
It will have 150 condominium housing units and small retail sites on its lower floors.
Elad's plans had raised a chorus of objections from New Yorkers who held weddings and bar mitzvahs there and frequented its bars to relax with a drink.
Around the world, children know it as the home of Eloise, the heroine of children's fiction who roller-skates through its halls and irks its stodgy guests.
"I'm elated," said Joseph Lamont, a Plaza bellman for 17 years. "The children and families really love this hotel.'"
Elad and the union bargained for five days, ending their talks early on Thursday, the union said.
"This is a result that truly is a victory for everyone. The ownership is truly delighted," said Lloyd Kaplan, spokesman for Elad.
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