LAS VEGAS—With the owners of the original Waldorf-Astoria and St. Regis hotels as role models, Elad Properties, principal owner of the landmark Plaza Hotel in New York, plans to create a brand out of its iconic property and construct a series of Plaza hotels in such global gateway destinations such as London, Hong Kong and Shanghai, China. First out of the box was supposed to be The Plaza Las Vegas, a $5-billion, 6,700-room mega-resort and casino designed to open in 2012 on the site of the former Frontier Hotel & Casino on the Las Vegas Strip. But the project hit a stumbling block when the developers were sued for trademark infringement by the Tamares Group, owners of a modest 37-year-old hotel and casino here that also carries the Plaza name. Last month, following a three-week trial in Clark County Court, jurors found in Elad’s favor, determining that the existing Las Vegas Plaza hadn’t taken the steps necessary over the years to protect a trademark claim. Out the window as well went Tamares’ demand for more than $29 million in damages. In a statement, Elad President and CEO Mike Naftali praised the jury verdict, citing the “abiding strength of The Plaza brand.” “Our rights date back more than 100 years,” Naftali added, a reference to the New York Plaza, which celebrated its centennial a year ago. A second hurdle facing Elad—the dour state of the credit markets, not to mention weakening demand in Las Vegas—may take more than a jury verdict to resolve. In fact, recent turmoil in the financial markets is already fueling speculation that Elad and its equity partner, IDB Holding, will delay construction further on the project here.
