New York City’s five-star, 20-story luxury hotel, The Plaza, stands proudly on the western side of Grand Army Plaza in Manhattan, its facade gracing the southeastern edge of Central Park. This iconic establishment is not only one of the city’s oldest but also among its most cinematic, having graced countless famous films throughout its history. In 1964, The Beatles even stayed here. Read on to discover more about the history of this hotel, which has become a true New York City landmark on newyork1.one.
The Grand Opening of the First Plaza Hotel
The plot of land where the world-renowned Plaza Hotel now stands in New York was initially sold by the local government in 1853. Over time, its ownership and purpose shifted repeatedly. For a period, it even housed a skating club before sitting vacant.
In 1881, when the then-owner, John Anderson, passed away, his son inherited the land. The following year, he proposed a 12-story apartment building for the site, but the idea never materialized due to a lack of funds.
In 1883, John Duncan Fife and James Campbell acquired the parcel and decided to construct a 9-story apartment building. They secured several mortgages and immediately began construction but couldn’t see it through. The uncompleted building was then purchased by “New York Life,” which finished the project and created a hotel. Frederick A. Hammond leased it in 1889.
The first Plaza Hotel in New York opened its doors on October 1, 1890. The building cost $3 million and featured eight stories with 400 rooms. Inside, it was adorned with red and carved wood furniture and enchanting stained-glass windows. Despite its beautiful interior, the hotel initially struggled to turn a profit. In 1891, it brought in a mere $72,000 in net profit, a stark contrast to the $1.8 million spent on its completion.
Twentieth-Century Renovations and Operations
When it was first built, The Plaza Hotel was located in a rather secluded area. However, by the early 20th century, it became part of a bustling commercial district along Fifth Avenue. Other hotels even began to pop up in this part of the city.
In 1902, Harry S. Black, head of the “George A. Fuller Company,” purchased the hotel and three adjacent plots for $3 million. Remarkably, he made this purchase in cash, marking it as the largest real estate acquisition in Manhattan at the time. Soon after, the “Plaza Realty Company” was established to oversee the hotel’s renovation. The owners aimed to create a truly grand building that would captivate every visitor.
Henry J. Hardenbergh, who had experience designing other high-end hotels like the “Waldorf Astoria,” was brought on as the architect. The owners secured permission to add five more stories to the existing structure, but it quickly became apparent that the current foundation wouldn’t support the additional weight. A decision was then made for a complete rebuild.
The first Plaza Hotel closed on June 11, 1905. Its furnishings were sold at auction, and demolition of the building began. This process took two months, after which new construction commenced. The total cost reached $12.5 million.
The new Plaza Hotel opened on October 1, 1907. A room there cost $2.50 per night, but most guests stayed for longer periods, paying less. The new building more than doubled the capacity of the first structure, featuring 500 bathrooms, ten elevators, two floors of public rooms, and a magnificent marble staircase.
In 1943, Conrad Hilton acquired the hotel for $7.4 million, then invested another $6 million in its renovation. Subsequently, the building frequently changed hands but always remained a hotel. One of the businessmen who decided to purchase it was Donald Trump. He bought The Plaza for $407.5 million in 1988 and initiated a massive renovation.
The new owner aimed to update the lobby and other interior elements. Trump planned to gild many surfaces, reupholster furniture, and replace carpets. Despite the substantial investment, he couldn’t increase the hotel’s profitability. Debts soared to $600 million, leading him to eventually sell his shares and find buyers who continued his work.
The Plaza Hotel in the 21st Century
After the September 11, 2001, terrorist attacks, tourism in New York City significantly declined. The Plaza Hotel’s profits also dropped, leading its new owners to sell the building in 2004 for $675 million to “El Ad Properties.” The company intended to add residential and commercial spaces, but this plan was not approved by union representatives and architectural preservationists.
After lengthy negotiations, the parties reached an agreement, and in 2005, the hotel closed for a $450 million renovation. Most of the temporary hotel rooms were converted into residential units, the stained-glass ceiling was restored, the upper floors were expanded, and an additional small floor was created above the existing roof. The hotel retained 282 rooms and gained 152 private apartments. Furthermore, an underground shopping center with luxury brands and a food court opened within the building.
After all these works, The Plaza reopened to guests on March 1, 2008. The modern Plaza Hotel is a chateau-style building, inspired by the French Renaissance. Apartments in the hotel are available for purchase, and this option remained popular even during the financial crisis. Entrepreneur Lev Leviev was one of the first to buy an apartment for $10 million, and the most recent sale fetched a record-breaking $50 million.
Architectural Landmark and Filming Location
The significance of The Plaza Hotel in the city’s architecture was recognized in 1978 by the New York City Landmarks Preservation Commission. It granted the building a special status, equating it to national historic landmarks. This significantly increased tourist visits, leading to the hotel being closed to public tours in 2009.
The building’s popularity is also linked to its frequent appearances in cinema. The hotel made its big-screen debut in 1959 in Alfred Hitchcock’s “North by Northwest.” Following this initial success, it served as a filming location for other renowned movies:
- “Brewster’s Millions” (1985)
- “Crocodile Dundee” (1986)
- “Home Alone 2: Lost in New York” (1992)
- “Scent of a Woman” (1992)
- “Sleepless in Seattle” (1993)
- “Spider-Man” (2002)
- “The Great Gatsby” (2013)
- “The Post” (2017)
Thanks to its appearances in these films, The Plaza Hotel has become widely recognized and beloved. It’s often called one of New York City’s symbols, known far beyond the city limits.
Moreover, famous personalities have stayed here over the years. Opera singer Enrico Caruso, writers F. Scott Fitzgerald and Zelda Fitzgerald, and architect Frank Lloyd Wright all resided in its guest rooms. The Beatles famously stayed at The Plaza during their first US tour in 1964. In 1985, the Plaza Accord, an agreement to depreciate the U.S. dollar against the Japanese Yen and German Mark, was signed here by finance ministers from the U.S., Japan, France, West Germany, and the UK.
Thus, The Plaza Hotel remains a popular destination for New York City visitors who wish to connect with history and experience its beauty both inside and out.