NEW YORK CITY—Continuing its history of changing hands, the Plaza Hotel is set to go up for auction next month, according to Bloomberg Business.
The property's mortgage holders, billionaire brothers David and Simon Reuben, have scheduled a foreclosure auction for April 26, Bloomberg was told by a person with knowledge of the matter, who asked not to be named.
The Reubens purchased the loan from Bank of China Ltd. Following a default last year by the property's current majority owner, Sahara India Pariwar. Sahara is controlled by Subrata Roy, who was imprisoned in India in early 2014 for defrauding investors. The Plaza is operated by Fairmont Hotels & Resorts.
The sale includes the Plaza's 282 hotel rooms, its restaurants and 161,192 square feet of retail spacer. It's being sold in a package with the Dream Downtown hotel. Located in the trendy Meatpacking District, the latter hotel also is owned by Roy, along with hotelier Sant Singh Chatwal.
The two hotels serve as collateral for the Bank of China loan and are cross-collateralized with the Grosvenor House hotel in London. The combined mortgages for the New York properties total about $500 million, the person with knowledge of the situation tells Bloomberg.
Previously, the iconic 109-year-old hotel was owned by billion real estate tycoon—and frontrunner for the Republican party's nominee as President of the United States—Donald Trump, who purchased the property in 1988 and married his second wife, Marla Maples, at the site.
Trump sold it to a group that included Prince Alwaleed bin-Talal of Saudi Arabia, who then sold it to Israel's Elad Group, which converted some of the hotel rooms to condominiums. Bin-Talal retains a minority stake in the Plaza, as does an entity of Chatwal.
The news comes amid other big changes in the hotel sector, including today's news regarding Anbang Insurance Group Co. Ltd and Starwood Hotels & Resorts, placing more Chinese investment
The property's mortgage holders, billionaire brothers David and Simon Reuben, have scheduled a foreclosure auction for April 26, Bloomberg was told by a person with knowledge of the matter, who asked not to be named.
The Reubens purchased the loan from Bank of China Ltd. Following a default last year by the property's current majority owner, Sahara India Pariwar. Sahara is controlled by Subrata Roy, who was imprisoned in India in early 2014 for defrauding investors. The Plaza is operated by Fairmont Hotels & Resorts.
The sale includes the Plaza's 282 hotel rooms, its restaurants and 161,192 square feet of retail spacer. It's being sold in a package with the Dream Downtown hotel. Located in the trendy Meatpacking District, the latter hotel also is owned by Roy, along with hotelier Sant Singh Chatwal.
The two hotels serve as collateral for the Bank of China loan and are cross-collateralized with the Grosvenor House hotel in London. The combined mortgages for the
Previously, the iconic 109-year-old hotel was owned by billion real estate tycoon—and frontrunner for the Republican party's nominee as President of the United States—Donald Trump, who purchased the property in 1988 and married his second wife, Marla Maples, at the site.
Trump sold it to a group that included Prince Alwaleed bin-Talal of Saudi Arabia, who then sold it to Israel's Elad Group, which converted some of the hotel rooms to condominiums. Bin-Talal retains a minority stake in the Plaza, as does an entity of Chatwal.
The news comes amid other big changes in the hotel sector, including today's news regarding Anbang Insurance Group Co. Ltd and Starwood Hotels & Resorts, placing more Chinese investment
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.