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Historic Oak Room At NY’s Plaza Hotel Set To Close

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This is the east-facing facade of the Plaza Hotel Thursday, April 14, 2005, in New York. The hotel's owners and the hotel workers' union reached a tentative agreement that would save the Plaza hotel and thousands of hotel workers' jobs. (AP Photo/Kathy Willens)

This is the east-facing facade of the Plaza Hotel Thursday, April 14, 2005, in New York. The hotel’s owners and the hotel workers’ union reached a tentative agreement that would save the Plaza hotel and thousands of hotel workers’ jobs. (AP Photo/Kathy Willens)

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NEW YORK (CBSNewYork/AP) – The Oak Room at New York City’s landmark Plaza Hotel is set to close due to a dispute between its operators and hotel owners.

Eli Gindi, an Oak Room owner, tells The New York Times that rent negotiations with the hotel broke down in March.

Papers filed with the state Department of Labor list the Oak Room as closing on July 31. But a hotel spokesman tells the Times it’s in discussions with potential new owners.

The Plaza’s owners have sued the Oak Room’s owners for $33.3 million for what a spokesman called “numerous violations of the lease.”

Gindi says the dispute centers on “Day and Night,” a lucrative Oak Room event that drew hundreds of people and but upset the hotel’s year-round tenants.

Last September, the Oak Room was the site of an unannounced, impromptu performance by Lady Gaga.

(Copyright 2011 by The Associated Press.  All Rights Reserved.)

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