The Iconic Plaza Hotel In New York City Is Looking For Buyers
The majority owner of New York’s Plaza Hotel, Sahara India Pariwar, has hired a broker to sell the famous New York City hotel.
One of New York City’s most iconic properties could be having new owners very soon. The Indian business conglomerate, Sahara Group, has hired a broker to sale the Plaza Hotel, according to The Wall Street Journal. The brokerage Jones Lang LaSalle Inc. (JLL) is set to handle the sales process.
Jeff Davis, international director at JLL, and head of the New York office of the firm’s hotels told the Journal, “We do have the listing for the Plaza,” In addition, he declined to comment further. At the same time, a Sahara spokesman said a “sale is under process and it has not yet concluded.”
The 20-story luxury hotel opened in 1907. It has been a city landmark since 1969—and a National Historic Landmark since 1986. For more than a century, the Plaza Hotel has been the scene of notable events and has featured prominently in film and literature. Sahara acquired a controlling stake in the hotel back 2012. But before, the hotel has had many owners over the years, including the Hilton clan, and current president, Donald Trump.
There is not much information on how much a buyer would pay for this famous and historical property. Hotel investors, experts, and brokers who spoke to the WSJ suggested that it could be one of the most expensive hotel sales on a per-room basis. What does this really mean? Rooms are valued at $2million a piece which brings the property value to around $560million.
Who are the interested parties? Well, rumor has it that there are three groups trying to get the popular hotel. First, A Qatari sovereign-wealth fund. Second, a Shanghai municipal investment fund and, lastly, the famous, Pras Michel, Grammy-winning cofounder of the hip-hop group Fugees.
The hotel has courted numerous investors over the past few years without a sale. For example, in May 2017, the New York Post mentioned that Saudi Prince Al-Waleed Bin Talal had partnered with Ashkenazy Acquisition Corp. to force a buyout of the hotel. This attempt could had saved the Plaza from its everlasting troubles, but it did not happen.
Let’s not forget that the property is under the hands of accused fraudster Subrata Roy. He had been locked up in India amid allegations that he bilked investors out of billions of dollars, leaving the Fifth Avenue landmark’s operations to deteriorate over the past five years, according to the Post.
Let’s hope that this time, the Plaza Hotel finds a suitable buyer…