Saudi Prince, Developer, Swoop In To Buy Plaza Hotel, Report Says

MIDTOWN MANHATTAN, NY — A Saudi Prince and a New York City-based real estate developer are matching a $600 million deal to buy a controlling stake in Midtown's iconic Plaza Hotel, according to reports.

Prince Al-Waleed Bin Talal's Kingdom Holdings and Ashkenazy Acquisition Corp. — which currently own 25 percent of the hotel — will exercise their right of first refusal to scoop up the remaining 75 percent, the New York Post first reported.

News broke last week that The Sahara Group, which owns 70 percent of the hotel, and hotelier Sant Singh Chatwal, who owns another 5 percent, will sell their stake in the hotel to Dubai-based venture capital firm White City Ventures, and New York City landlord Kamran Hakim.

The buyers were aware of the Saudi prince and Ashkenazy's right to match the offer, but went ahead with the deal, the Post reported.

Michael Alpert of Ashkenazy told the Post that the partnership exercised their right earlier this week and that Ashkenazy and the prince plan to "restore the splendor of The Plaza."

"We are actively working with leading brands around the world to accomplish the transformation," Alpert told the Post.

JLL Hotels and Hospitality Group were been hired in 2017 to help The Sahara Group sell the luxury hotel, located on Fifth Avenue and Central Park South, the Wall Street Journal reported at the time. Real estate experts told the Wall Street Journal that the hotel could fetch more than $500 million on the open market.

The Plaza was previously purchased for $675 million in 2004, but its value has since diminished. Since that sale, most of the Plaza's best rooms facing Central Park have been converted into condos, the Wall Street Journal reported. The Plaza currently contains 282 guest rooms and 152 privately-owned residences, according to the report.

Read the full New York Post report here.

Photo by George De Sota/Hulton Archive/Getty Images