New York's Plaza Hotel auction delayed

Plaza Hotel NYC

New York's Plaza Hotel, which had a planned foreclosure auction next month, was canceled after the holders of the mortgage reached a deal giving borrowers more time to sell the property and pay off the loan.

The hotel's ownership has been uncertain for two years, with billionaire brothers David and Simon Reuben holding the mortgage of the property. An auction was scheduled for April 26.

The Reubens' loan was purchased from the Bank of China after Sahara India Pariwar, the property's majority owner, defaulted on it last year. Sahara is owned by Subrata Roy, who was jailed in March 2014 due to outstanding debt in the billions to bondholders. 


Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

The Plaza's 109-year history has seen it run by a variety of owners, including presidential candidate Donald Trump in 1988, who sold it to Prince Alwaleed bin-Talal of Saudi Arabia and then Israel's Elad Group. 

The Plaza's hotel rooms, restaurant and retail space are for sale as part of a package with the Dream Downtown hotel in Manhattan's Chelsea Neighborhood. Roy and Chatwal own the Dream. Both hotel's mortgages are worth roughly $500 million.

Suggested Articles

Co-living brand The Collective has agreed a new £140m financing package from Deutsche Bank and GCP Asset Backed Income Fund.

Accor said that it could see room to grow in Europe, commenting that it would “never be number one” in North America and China.

Increasing property values are another factor causing owners to look to defeasance of their CMBS loans, according to Trepp.