Sahara Group is set to buy the 105-year-old luxury landmark, New York's Plaza Hotel for $570 million, an Indian newspaper reported on Tuesday.
The deal for the Plaza, which is jointly owned by Elad Properties, an Israeli-owned real estate company, and Saudi-based Kingdom Holdings Co, is expected to be announced by the end of this month. The hotel has been managed by Fairmont Hotels & Resorts Inc since 1999.
Elad, has decided to sell its stake to Sahara Group, while Kingdom, the company of Saudi billionaire Prince Alwaleed bin Talal, will hold a 25% stake after the completion of the deal, the newspaper reported.
The report also said Fairmont would continue to operate the Plaza for two years before handing over control to Sahara. Sahara could not be reached immediately for comment. Elad, Fairmont and Plaza officials did not immediately return calls seeking comment.
Sahara bought London's Grosvenor House Hotel in 2010 and is in negotiations to buy out some Marriott hotels in London, according to the report.