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.


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.

Source: Bloomberg


Suggested Articles

The sale is the latest step in Park's asset-light strategy.

As a rapidly rising hotel investment market, Italy is attracting interest from a range of companies—most recently, France's Covivio Hotels.

industry experts offered insight on selling franchised hotels as well as how to prevent ADA issues from developing during a renovation.