Gates took great pleasure in watching the Plaza Hotel take shape. He was a daily visitor to the construction site as the Spanish mission style building was erected. When the hotel was opened, Gates held a special "billion dollar banquet" on November 15, 1909; his guests were men who owned railroads, Texas Company board members, and other successful men in business. Port Arthur had never seen so many wealthy and powerful men and residents were impressed by the sight of them. Gates served as the hotel's manager in the first few weeks it was in operation. He hired African-Americans as waiters; this was considered to be very bold, as African-Americans were barred from living and working in the city at the time.