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Sale of majority stake in Plaza Hotel up in the air

Family of owners wants at least $600M

From left: Subrata Roy, The Plaza Hotel at 768 5th Avenue in Midtown and Al-Waleed bin Talal
From left: Subrata Roy, The Plaza Hotel at 768 5th Avenue in Midtown and Al-Waleed bin Talal

The sale of the majority stake in The Plaza Hotel may have hit another roadblock.

Qatar Investment Authority and Prince Alwaleed bin Tal’s Kingdom Holding reportedly offered $550 million for a 75 percent interest in the hotel, the New York Post reported. The controlling stake is currently owned by the Sahara Group, which is headed by Subrata Roy, who has spent the last two years in prison for an alleged illegal bond sale. Roy’s family, however, is seeking at least $600 million for the Plaza, so it’s unclear if they will reject the Qatar Investment Authority’s bid.

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That bid followed another rumored offer by an unnamed member of the Saudi Royal family and a British investment firm in June to Buy The Plaza Hotel for $352 million. Whatever the fate of the QIA’s bid, what is clear is that the sale of Roy’s stake is likely going to be difficult, given the number of stakeholders and their often competing interests.

Roy bought the controlling stake in the hotel, located at 768 Fifth Avenue, from the Elan Group in 2012 for $575 million. Other previous owners include Saudi Prince Alwaleed bin Talal and Republican presidential nominee Donald Trump[NYP] — Kathryn Brenzel

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