Elad sues Oak Room owners for $33M

TRD New York /
May.May 02, 2011 09:29 AM

Plaza Hotel landlord Elad Properties has filed a $33.3 million lawsuit against the owners of its famed Oak Room and Bar, decrying its recent lack of class. According to the Post, owners Jeffrey and Eli Gindi have allowed the reputation of the legendary eatery to falter, hosting regular Burlesque shows and encouraging “raucous and/or vulgar” behavior, loud music, and illegal drug use, in addition to failing a city health inspection and garnering less-than-stellar restaurant reviews, the suit alleges. The Oak Room underwent a renovation in 2008 that was supposed to turn in into a “premier, upscale, white-tablecloth” venue that should have earned above a 70 rating in Zagat’s annual survey, according to the complaint, which was filed in Manhattan Supreme Court last week. The Oak Room only earned a rating of 67. According to Robert Lynn, an attorney representing the Gindis, the lawsuit comes amid a legal dispute between the two parties over rent, and said there has been no drug use or otherwise uncouth goings-on at the Oak Room. “Probably the owners of The Plaza would do better regulating who goes into their hotel rooms,” Lynn said, apparently referring to a certain tiger-blooded guest. “They really are reaching to find a breach of the lease.” Meanwhile, the Gindi family, which owns discount retailer Century 21, is also having trouble keeping up with mortgage payments at the Bryant Park Hotel, it was reported today. [Post]

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