The Plaza Hotel to Close for Four Years for Facade Restoration

The iconic Plaza Hotel is set to close its doors for at least four years beginning in January for a comprehensive facade restoration. Fairmont Hotels & Resorts announced the closure this week, with the work expected to last until 2031 due to the project's complexity and potential disruption to hotel operations.

While the hotel will cease operations, residents of its 181 condominiums will not be forced to vacate. Brokers with clients in the building confirmed that owners have separate entrances and will continue to reside in their units. However, they will lose access to hotel amenities such as the Palm Court, event spaces, and other services. Scaffolding is expected to encase the building for the duration of the restoration.

News of the impending closure was shared with condo owners earlier this year, months before the public announcement, according to real estate brokers. This advance knowledge has already begun to impact the sales market for the luxury residences.

"I think there are 29 units currently on the market and I’m sure there’s a few shadow inventory that’s not yet listed," said Michael Passoro, a broker with Douglas Elliman. He noted that a recent $10.625 million sale in February 2025 was completed amidst rumors of the closure, and the buyer has since relisted their unit. Brokers suggest that this situation grants more leverage to potential buyers, potentially making sales more challenging in the short term.

"I think it is going to be difficult to sell in the building over the next couple years," Passoro added. "Negotiability, I think it’s just gone up for anybody that’s looking possibly to purchase in the building." He anticipates that buyers might opt for other luxury towers in the vicinity.

Despite the short-term challenges, brokers like Kane Manera of Corcoran believe the long-term benefits of the renovation will outweigh the inconvenience. "It's a blip in the ocean, at least from where I stand," Manera stated, emphasizing that most Plaza buyers are long-term residents. He predicts that once the restoration is complete and the building is revitalized, it will lead to a surge in sales.

"Once people experience The Plaza in its renovated format, it’s going to be a slingshot for sales," Manera said, with Passoro agreeing that it represents "a short-term inconvenience for a long-term gain."

Both brokers also expressed hope that the renovation could lead to the revival of the hotel's long-dormant underground food hall, a feature that has been a point of concern for potential buyers. The Plaza's 378 unionized workers are expected to be offered re-employment at the same pay upon reopening, with efforts to place them in other roles during the closure.

New Yorkers and visitors will have one final holiday season to experience the hotel's current offerings before the extensive renovation begins. For now, residents will continue to live in the building, albeit behind years of scaffolding, while the landmark undergoes significant preservation work.