The Sahara Group, owned by Indian business mogul Subrata Roy Sahara, has bought a 75% controlling stake in New York City’s fabled The Plaza hotel for a bawdy US$570 million.
Israeli-owned Elad Properties will receive 60% of the purchase price (US$400 million) after buying the icon in 2004 for US$675 million. The remainder of the proceeds goes to minority owner Saudi Prince Alwaleed of Kingdom Holdings, which will continue to hold a 25% stake in the hotel once the deal is completed.
Elad said in its statement that Fairmont Hotels & Resorts will continue to manage the hotel for at least two more years.
The 282-room hotel with 152 condo units overlooking Central Park underwent a US$400 million renovation that between 2005 and 2008. The hotel was built for US$12.5 million when it opened in 1907.
Media reports have suggested that Elad sold luxury apartments after the recent renovation for US$1.5 billion, netting US$500 million in profit.