NEW YORK
Elad Group is close to selling its stake in New York's Plaza Hotel to Sahara India Pariwar, and co- owner Kingdom Holding Co., controlled by Saudi billionaire Prince Alwaleed bin Talal, will hold a 25 percent stake after the deal is done, said a person with knowledge of the deal.
The transaction is set for completion in early July, according to the source. Fairmont Hotels & Resorts, in which Kingdom has a stake, will continue to operate the Plaza for at least two years, the person said.
Sahara India Pariwar, which bought London's Grosvenor House luxury hotel in 2010, made an offer in April to buy the Plaza, a century-old destination for socialites and celebrities near Manhattan's Central Park. Negotiations were complicated by Sahara India Pariwar's desire to take over management of the property, according to the person with knowledge of the deal.
Kingdom has a 50 percent stake of the Plaza's 130 hotel rooms and public areas, and owns 25 percent of the 100 rooms that were sold as condominiums and rented out as hotel rooms, the person said. After the transaction is completed, Kingdom will own 25 percent of the entire property, the person said.
Courtesy of www.sfgate.com
