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 Roundtable

Post COVID-19: The New Guest Experience

Join Hotel Management’s Elaine Simon for our latest roundtable—Post COVID-19: The New Guest Experience. The experts on the panel will share how to inspire guest confidence that hotels are safe and clean and how to win back guest business.

Source: Bloomberg


Suggested Articles

The holding company believes MGM's online gaming business will grow—but was also drawn to the entertainment giant's hospitality sector.

The REIT said that it does not expect to see a meaningful increase in demand for its portfolio until there are COVID-19 medical solutions in place.

The LW Hospitality Advisors "Q2 2020 Select Major U.S. Hotel Sales Survey" highlights six transactions across the country.