Sahara Group has agreed to buy a controlling stake in New York’s landmark Plaza Hotel for $570 million, Elad Properties said.
The 105-year-old luxury hotel overlooking New York’s Central Park, is jointly owned by Elad Properties and Saudi-based Kingdom Holdings Co.
Elad said it would receive 1.6 billion shekels ($400 million) for its 60 percent stake, while Kingdom will receive the rest.
Kingdom, the investment vehicle of Saudi billionaire Prince Alwaleed bin Talal, will hold a 25 percent stake once the deal is completed, Elad said in a statement.
It said Fairmont Hotels & Resorts, which has managed the hotel since 1999 and which is owned by the Saudi prince, will continue to operate the property.
Elad bought the hotel eight years ago for $675 million. According to media reports, Elad had sold luxury apartments in the renovated hotel for $1.5 billion. The sale of the apartments alone netted Elad Group $500 million in profit.
Source: Trade Arabia