NYC's Plaza Hotel to hit auction block next month

Plaza Hotel

Next month, New York City’s Plaza Hotel is slated to go on the auction block in a move that could end what Bloomberg is calling "two years of uncertainty" over ownership of the property.
The mortgage on the hotel is currently held by billionaire brothers David and Simon Reuben, who have reportedly scheduled a foreclosure auction for April 26. The Reubens bought the loan from Bank of China Ltd. after a default by the property’s current majority owner, Sahara India Pariwar, last year. Sahara is controlled by Subrata Roy, who was imprisoned in India in early 2014 for defrauding investors.

Prince Alwaleed bin-Talal of Saudi Arabia retains a minority stake in the Plaza, as does an entity tied to hotelier Sant Singh Chatwal.

Specifically, the Plaza’s hotel rooms, its restaurants and retail space are up for sale. These assets are being sold in a package with the Dream Downtown hotel, serving as collateral for the Bank of China loan. They are also cross-collateralized with the Grosvenor House hotel in London. The Dream hotel is owned by Sahara’s Roy and Chatwal. The combined mortgages for the New York properties total about $500 million, Bloomberg notes.

Virtual Event

HOTEL OPTIMIZATION PART 2 | Now Available On-Demand

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.

Source: Bloomberg


Suggested Articles

Oxford Capital Group’s wholly owned affiliate, Oxford Hotels & Resorts, has taken over management of the properties.

The partnership with Black Salmon leverages both company's strengths across acquisitions, asset management and capital raising.

A new entity will combine a number of brands, including Hoxton, Gleneagles, Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25h and 21c Museum Hotels.