Could India’s Sahara Group be the next proud owner of the landmark Plaza Hotel? With a $600 million bid being reported on Tuesday, the Indian conglomerate might just seal the deal on the New York luxury hotel.
According to several reports, Sahara is in advanced, exclusive negotiations to acquire the 105-year-old hotel from its Israeli owners at El Had Properties. The deal currently stands at $400 million for the hotel, featuring 30 rooms, and $200 million for the retail portion, which includes banquet halls, a fitness center and an underground mall. The Economic Times reported that Sahara already made a 10 percent down payment for the property.
Forty percent of the Plaza’s rooms are owned by Kingdom Holding Co., controlled by Saudi Prince Alwaleed bin Talal. Charles Henry, a spokesperson for the company, told Bloomberg News that Kingdom has no plans to sell its shares at this time. “The prince’s objective is to be a long-term investor in this kind of iconic asset.”
The bid would also place Sahara at the helm of Plaza management, thereby requiring the termination of existing management by Fairmont Hotels and Resorts. The latter group has managed the hotel since 1995. But as speculation looms large around the Plaza’s eventual fate, neither Sahara, El Had, nor Plaza management were available for comment.
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Sabrina Siddiqui is the editor-in-chief of Divanee.com.
