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India’s Investments in U.S
Sahara India bids $600 million for Plaza Hotel in New York
Multi-business Indian conglomerate Sahara India Pariwar, whose businesses range from airlines, luxury
resorts to media finance, has made an unsolicited $600 million bid for Plaza Hotel in New York, The Wall
Street Journal today reported, citing people familiar with the matter.
The deal would need the approval of two owners, Israeli entrepreneur Isaac Tshuva's Elad Properties
and Kingdom Holdings, controlled by Saudi billionaire Prince Alwaleed bin Talal. Sahara India Pariwar,
run by billionaire Subrata Roy has made the offer to El Ad, which is examining the proposal. Sahara's
$600-million offer is divided into two parts, $400 million for the hotel portion of the Plaza, which has
230 rooms, and the remaining $200 million for the retail portion of the hotel, which encompasses the
hotel's banquet hall, fitness centre and other common areas wholly owned by El Ad.
Kingdom spokesman Charles Henry told the paper, "Kingdom is not a seller of its interest at this time,"
but El Ad can sell its own interest, though Kingdom's approval of such a deal would be needed. Kingdom
owns 50 per cent of an entity that holds 130 of the Plaza's rooms and 25 per cent of another entity that
holds 100 rooms that were to be sold as condominiums but are still rented out as hotel rooms. El Ad
owns the rest.
The offer comes less than two years after Sahara India Pariwar acquired the historic Grosvenor House
Hotel that was once home to the Duke of Westminster and frequented by royalty, celebrities and
business leaders, for throwaway price of £470 million ( ` 3,275 crore. The Plaza Hotel located at fifth
Avenue and Central Park South, opened its doors on 1 October 1907 and is considered as one of
America's most celebrated hotels.
Kings, presidents, ambassadors, movie and sports stars, as well as business executives and travellers
from all parts of the world have stayed at The Plaza.
The Plaza was so well known that Ernest Hemingway once advised Scott Fitzgerald to give his liver to
Princeton and his heart to The Plaza. The Plaza has provided the location for other motion pictures such
as The Way We Were, The Great Gatsby, Barefoot in the Park, Funny Girl and Home Alone II. Designated
a New York City Landmark in 1969, The Plaza is listed on the Register of Historic Places and the only New
York City hotel to be designated as a National Historic Landmark.
Since 1999, The Plaza has been managed by Fairmont Hotels & Resorts, which is 35 per cent owned by
Kingdom Holdings. Any deal would require the termination of the management of the Plaza by Fairmont
and run by Sahara. Sahara owns the Sahara Star Hotel in Mumbai, which has 210 guest rooms and 13
suites and the luxurious 10,600 acres Aamby Valley City.