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Sahara Group Finally Buys The Plaza Hotel From Elad

Hotel Real Estate News NYC

Elad Properties announced the details of its sale of a 60 percent stake in the Plaza hotel, Reuters reported.

TEL AVIV (Reuters) - India's Sahara Group has agreed to sell a controlling stake in New York's landmark Plaza Hotel for $570 million, Elad Properties, an Israeli-owned real estate owned company, said on Monday

India-based Sahara Group will pay Elad $400 million for its share of the property and fork over an additional $170 million for another 15 percent of the property currently owned by Kingdom Holdings, an investment group run by Prince Alwaleed bin Talal of Saudi Arabia. Kingdom will retain a 25 percent stake, according to Elad.

The Plaza Hotel and Residences

The Plaza Hotel is one of only two New York hotels that have been designated a national historic landmark.  The historic 19-story building, owned by ELAD Properties, underwent a $350 million renovation that resulted in 182 luxury residential units and 282 hotel rooms (including 152 condominium hotel units), and 180,000 sq. ft. of retail space.  There are separate entrances for the hotel and for the residential units.

Elad said Fairmont Hotels & Resorts Inc, which has managed the hotel since 1999 and which is owned by the Saudi prince, will continue to operate the property.

Tshuva 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.