Indian Real Estate Firm Acquires Major Stake in New York’s Plaza Hotel
India-based real estate company Sahara India Pariwar has purchased a 75% stake in New York’s iconic Plaza Hotel for $575 million from El Ad US Holdings. Known for hosting notable figures such as Eleanor Roosevelt, Mark Twain, the Beatles, and Groucho Marx, the Plaza Hotel is located on 59th Street near Manhattan Central Park.
Historic Significance and Current Ownership:
The Plaza Hotel is renowned globally as an iconic property, due in part to its prime location in Manhattan. The hotel’s prestige extends its owner a high profile in the United States, as mentioned by Greg Rice, Solid Rock’s president, to the Commercial Property Executive.
Speaking about the acquisition, Rice noted that properties like the Plaza Hotel often appreciate at a higher rate. The remaining 25% of the hotel is owned by Prince Alwaleed bin Talal, a Saudi billionaire, and co-owned by Kingdom Holding Co.
Acquisition Details:
Sahara India Pariwar’s purchase includes 230 hotel rooms and retail space. The Indian firm will also gain ownership of several luxurious condominiums and an underground luxury mall. Rice emphasized that buying the Plaza Hotel is an excellent means for capital preservation, given the liquidity and historical performance of the New York hotel market.
Expansion and Future Plans:
Rice believes this acquisition offers a great opportunity for the Indian real estate firm to expand into the U.S. market. The Indian group aims to hold the property for an extended period to multiply its assets due to the value appreciation it offers.
Mr. Rice explained that keeping the property longer in the U.S. will lead to higher value appreciation, making the Plaza Hotel an irreplaceable real estate asset. Sahara India Pariwar has already initiated upgrade processes, starting with the reopening of the legendary 'The Oak Room'.
Other Investments and Operations:
This is not Sahara Group's first hotel venture. The company also owns the historic Grosvenor House in London and another high-end hotel in Mumbai. The Plaza Hotel will be operated by Fairmont Hotels & Resorts under a long-term agreement.