The Economic Times, citing ‘people close to the development,’ reports that the India-based Sahara Group will pay $575 million to acquire the Plaza Hotel. The transaction is expected to be signed later this week.
The Sahara Group is purchasing the hotel from Israeli company El Ad, which bought the hotel from Saudi Prince Alwaleed bin Talal's Kingdom Holdings in 2004 for $675 million; the Saudi company later repurchased a 25% share of the hotel, which it will retain. The hotel's existing management contract with Fairmont Hotels & Resorts will remain in place for the next year.
Built in 1907, the 282-room luxury hotel has been prominently featured in classic books and films. It was named a National Historic Landmark in 1986.
The Economic Times also reports that the Sahara Group is considering the acquisition of other New York hotels, including the landmark Waldorf-Astoria, although the company has not confirmed that report.
(Photo courtesy of Infratec.)