That Time Trump Sold the Plaza Hotel at an $83 Million Loss

Late in the summer of 1994, Abraham Wallach, Trump’s original fixer, was determined to save his boss’s favorite property. The Plaza had declared bankruptcy, and its creditors were anxious to sell the hotel to recoup at least some of their original investment. It was a race to the finish. If Citibank and the other lenders found a buyer for the Plaza, Trump would lose the property. But if Trump could identify a buyer first, he might convince that person to let him continue managing the hotel or, perhaps, give him the go-ahead to complete his project to transform the Plaza’s top floors into penthouse apartments. Wallach was resolute that Trump would triumph.

Wallach’s most promising lead was Sun Hung Kai & Co., one of Hong Kong’s largest property investment companies. It was run by the three Kwok brothers, who were among the richest families in all of Asia. Walter Kwok, the eldest brother, was sufficiently intrigued at the prospect of purchasing the Plaza to come for a visit. With his wife, Wendy, and their children in tow, the family was put up in the lavish presidential suite. Over the course of several days, Wallach and Trump wooed the Kwoks, Wallach accompanying Wendy on shopping sprees, while Trump took Walter on golf outings.