Following redo NYC’s Plaza gets refinanced

November 2008

NEW YORK— The recently reopened Plaza Hotel here has been refinanced by its owners, El-Ad Group and Kingdom Holding, to the tune of $260 million.

A consortium of banks led by HSBC Bank USA provided the financing, which included a $40-million mezzanine loan from Transwestern Realty Finance Partners, LLC. The financing will be used to convert the hotel’s construction loan into a long-term, permanent mortgage for the property.

“We obviously faced strong head winds in this most challenging credit market of our times, but the strength of El-Ad, the quality of the hotel, the success of the operation and the power of the Plaza brand prevailed,” explained Miki Naftali, president and CEO of El-Ad.