The Real Deal New York

Post Plaza deal, Sahara eyes Meatpacking District’s Dream Downtown Hotel

August 06, 2012 01:30PM

Lost in all the buzz surrounding its $570 million acquisition of a stake in the Plaza Hotel was the news that India-based Sahara India Pariwar may take an 85 percent stake in hotelier Sant Singh Chatwal’s Dream Downtown Hotel. It’s not clear when the deal might close, as reports by the New York Times and India Today are conflicted. But the deal orchestrated by Sahara chairman Subrata Roy is said to value the hotel, at 355 West 16th Street between Eighth and Ninth avenues, at $100 million.

In 2011, Chatwal sold the management rights of the 315-room hotel to Wyndham Hotel Group, which will continue to run the Dream Downtown under its existing franchise agreement after control is transferred. The deal is being made through one of Sahara India Pariwar’s subsidiaries, Aamby Valley, and if finalized the deal will leave Chatwal with only a minor stake in the property. Despite apparently backing out of the Dream Downtown, Chatwal announced he would expand across India with plans to operate 52 hotels in the country (note: correction appended).

Meanwhile, Sahara is said to be looking to invest in other high-profile Manhattan hotels, including the Four Seasons, Mandarin Oriental and Waldorf Astoria. [NYT] and [India Today] – Christopher Cameron