New York's iconic Plaza Hotel in Midtown Manhattan is for sale. Built in 1907, the original construction of the 18-story structure cost only $12 million, but the Wall Street Journal says it could sell for up to $560 million—which would be one of the most expensive sales on a per-room basis for a hotel. JLL Hotels and Hospitality, part of global real-estate company JLL, has been hired by majority owner Sahara Group, an India-based conglomerate, to find a buyer.
Buyers who have expressed interest include a Shanghai municipal investment fund, a Qatari soverign-wealth fund, and Pras Michael, the Grammy-winning co-founder of the American hip hop group The Fugees. However, Saudi Arabian Prince al-Waleed Talal, along with Ashkenazy Acquisition Corporation, an investment and development company based in New York, are stake holders that own 25 percent of the property and may have other plans for the Plaza. The ownership agreement will allow the partners to match any offer the hotel receives and therefore take control of its future plans.
“We are not selling our stake and are comfortable with our rights relating to any sale by others,” said Sarmad Zok, chief executive of Prince al-Waleed’s company, Kingdom Hotel Investments, to the New York Times.
The partners of the hotel plan to modernize it to better compete with other Manhattan hotels. Previous owners of the Plaza include Conrad Hilton and Donald Trump. In 2004, the Plaza was purchased by Elad Group, and in 2008 it underwent a three-year, $400 million restoration. The hotel now features 282 hotel rooms and 152 privately owned condominium-hotel units. Donning Beau-Arts décor and gold plated fixtures, it is considered an architectural attraction and is listed as a National Historic Landmark.
