Sahara acquires two New York hotels for $800 million
28 November 2012
Diversified business group Sahara India, whose businesses range from airlines, luxury resorts to media and finance, has completed the acquisition of two iconic New York hotels, New York Plaza and Dream New York, after having paid a whopping $800 million (Rs4,400 crore).
In two separate deals signed on Monday, Sahara, run by Subrata Roy, will acquire a 75 per cent stake in The Plaza Hotel, which includes the entire 60-per cent held by Israeli entrepreneur Isaac Tshuva's Elad Properties, for $400 million and 15 per cent from Kingdom Holdings, controlled by Saudi billionaire Prince Alwaleed bin Talal, for $170 million.
Lucknow-based Sahara also acquired Dream Downtown from New York hotelier Vikram Chatwal for $220 million.
Elad owns the hotel portion of the Plaza, which has 230 rooms, and the retail portion of the hotel, which encompasses the hotel's banquet hall, fitness centre and other common areas.
Kingdom owns 50 per cent of an entity that holds 130 of the Plaza's rooms and 25 per cent of another entity that holds 100 rooms that were sold as condominiums but are still rented out as hotel rooms. Elad owns the rest.
Kingdom will now hold 25 per cent of The Plaza Hotel and Fairmont Hotels & Resorts Inc, and will continue to operate the Plaza for at least two years, before handing over control to Sahara.