NEW YORK—Sahara India Pariwar, an India-based conglomerate, completed the purchase of a 75 percent interest in the Plaza Hotel New York from real estate company El Ad US Holdings’ position in the hotel with a total valuation of $575 million. The acquisition includes 230 hotel rooms and retail space. Co-owner Kingdom Holding Co., controlled by Saudi billionaire Prince Alwaleed bin Talal, will retain its 25 percent stake in the property. Solid Rock Advisors, a real estate consulting firm specializing in luxury resort and hotel transactions, advised the seller in the transaction. Fairmont Hotels & Resorts will continue to operate the hotel under a long-term agreement.
“This was a great opportunity for the buyer to expand into a key U.S. gateway market with the purchase of such an irreplaceable asset as the Plaza Hotel,” said Solid Rock’s President Greg Rice, in an announcement. “The corner of 59th Street and Fifth Avenue is arguably one of the world’s most valuable pieces of real estate.”
“The New York City hotel real estate market remains one of the world’s most attractive investments. There currently are more buyers than sellers in the market. It is the world’s most liquid market and is excellent for capital preservation as it consistently outperforms inflation. There also is upside in the hotel market as it has not yet reached pre-recession levels. Capital is more widely available for buyers now, and sellers are making strategic decisions to bring their assets to market in this favorable environment,” Rice added. “While luxury hotels in New York City in particular have been one of the harder hit segments of the hospitality industry recently, they will benefit from strong growth as room rates return to their peak levels.”