Saudi family in talks to pay $352M for Plaza

Planned foreclosure auction for iconic hotel canceled this spring

TRD New York /
Jun.June 21, 2016 08:30 AM

Could the Plaza Hotel finally be getting a new owner?

After a canceled foreclosure auction this spring, an unidentified member of the Saudi royal family and London-based investment firm 3 Associates are in talks to buy the iconic property for $352 million, the New York Post reported. The joint venture is also looking to buy London’s Grosvenor House for $882 million and the Dream Downtown Hotel in Chelsea for $235 million.

The Plaza is owned by India’s Sahara India Pariwar, whose notorious founder Subrata Roy has been imprisoned for two years on contempt charges stemming from accusations of an illegal bond sale.

Earlier this year, billionaire investors David and Simon Reuben – Who Own The Plaza’s debt – decided to foreclose on the property. But they canceled an auction set for April in order to give Roy more time to sell the property and repay his loan. The Reuben brothers paid $800 million for the Plaza’s debt, plus notes on the Dream hotel.

The 557,000-square-foot Plaza, located at 768 Fifth Avenue, has changed hands several times over the past few decades. GOP presidential candidate Donald Trump bought it in 1988. He sold it to Saudi Prince Alwaleed bin-Talal, who passed it to the Elad Group. Roy paid Elad $575 million for a 75 percent stake in the hotel in 2012. [NYP] – E.B. Solomont


Related Articles

arrow_forward_ios
The Plaza Hotel, Sofitel New York at 45 West 44th Street and Le Bernardin at 155 West 51st Street (Credit: Yarl via Wikipedia Commons, Sofitel and Le Bernadin)

Mass layoffs claim jobs at the Plaza, Sofitel and Le Bernardin

Mass layoffs claim jobs at the Plaza, Sofitel and Le Bernardin
Plaza Hotel managing director George Cozonis with the Plaza Hotel at 768 5th Avenue (Credit: Cozonis by Fernanda Calfat/Getty Images)

The Plaza shuts down and lays off 251

The Plaza shuts down and lays off 251
1 Central Park South, 1007/1009 and Valery Kogan (inset)

Opulent Plaza Hotel unit listed for $45M

Opulent Plaza Hotel unit listed for $45M
The Plaza’s many lives: How moguls, labor fights and a changing city shaped an icon

The Plaza’s many lives: How moguls, labor fights and a changing city shaped an icon

The Plaza’s many lives: How moguls, labor fights and a changing city shaped an icon
Plaza PH buyer spends $29M to expand aerie

Plaza PH buyer spends $29M to expand aerie

Plaza PH buyer spends $29M to expand aerie
How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel
How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel
Qatari group closes on $600M purchase of Plaza Hotel

Qatari group closes on $600M purchase of Plaza Hotel

Qatari group closes on $600M purchase of Plaza Hotel
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...