Tanaka of Tokyo will close its restaurant at the Ilikai Yacht Harbor Tower after business tomorrow after 14 years, as part of a legal settlement with the hotel.

The restaurant, with 50 employees and 121 seats, is one of three for Tanaka in Waikiki.

Chester Kaneshiro, president of the Japanese steak house chain, said the company is looking for a replacement location. "We've been searching for the last couple of months," he said. "We haven't found anything."

The restaurant sued the owner of the Yacht Harbor Tower and the adjacent high-rise Ilikai Hotel last year alleging that renovation work damaged Tanaka business.

Local real estate firm Anekona Development Group bought 703 hotel units and commercial areas in the Ilikai's two towers for $212 million last year, and subsequently sold the 360-room Yacht Harbor Tower to an affiliate of San Diego-based real estate firm eRealty Cos. for $80 million.

After the transactions, the Yacht Harbor Tower's rooms, pool and parking entrance were closed. Tanaka, in its lawsuit, alleged that construction barricades separating the property from the main Ilikai tower and other changes hurt the restaurant on the Yacht Harbor Tower's lobby level.

Documents filed in the lawsuit showed that Anekona made offers to buy out Tanaka's lease before moving ahead with changes, but the tenant and landlord could not agree on terms.

Terms of the settlement were not disclosed.

Ed Bushor, a principal with eRealty, said it was extremely unfortunate that Tanaka could not be accommodated in the renovation plans for the property. "They are a great group of people and their food is fabulous and my kids are really sad that I could not extend their operations," he said. "I wish them the very best."

Reach Andrew Gomes at agomes@honoluluadvertiser.com.