India-based conglomerate Sahara India Pariwar has completed the purchase of a 75% interest in one of New York’s most well-known piece of real estate: the Plaza Hotel.
With a total valuation of US$575 million, the acquisition includes 230 hotel rooms and retail space.
Located on 59th Street and Central Park South in the Plaza District, the 807-room property last changed hands in 2004 when Israeli real estate investor El-Ad Properties bought the hotel from joint owners Millennium & Copthorne Hotels and Kingdom Investments for US$765 million.
The property’s co-owner Kingdom Holding Co., controlled by Saudi billionaire Prince Alwaleed bin Talal, will retain its 25% stake in the property.
Made famous by Hollywood in such movies as The Great Gatsby and Home Alone II, the Henry Janeway Hardenburgh-designed hotel played host to many notable guests, such as Eleanor Roosevelt, the Beatles, Mark Twain and Groucho Marx.
According to Greg Rice, president of Solid Rock, who advised the seller in the transaction, the purchase is a great opportunity for Sahara India Pariwar to expand into a key US market, as the corner where the hotel stands is arguably one of the world’s most valuable pieces of real estate.