Dubai investor can’t wait to say: ‘Welcome to the Plaza Hotel’
It has hosted the Beatles, was once owned by US President Donald Trump and has featured in dozens of Hollywood films including North by Northwest, Crocodile Dundee and Home Alone 2. It was also the setting for the Eloise series of children’s books.
Now, New York’s Plaza Hotel brand will come to the UAE by 2020 if a Dubai investor concludes a US$600 million (Dh2.2 billion) deal to acquire the luxury property.
“My dream has been to build a brand of Plazas globally, like the Ritz Carlton but with uber luxury and brands unique to the Plaza, like the Palm Court and the Oak Room,” Shahal Khan, founder of White City Ventures, told The National.
“We are ready to close and I look forward to opening a Plaza in Abu Dhabi soon thereafter ... by 2020 I’ll open one in UAE. Also one in China.”
Mr Khan and other investors have secured a deal with the Indian conglomerate Sahara India Pariwar, controlled by Subrata Roy, and will reportedly complete it by June 25.
The 111-year-old hotel, which is considered a trophy asset by investors, was bought by Mr Trump in 1988 for $390m.
The man who went on to become US president was forced to offload the Plaza, which was facing bankruptcy in 1992.
The hotel has been managed by Fairmont Hotels and Resorts, a unit of France’s Accor.
One of the investors close to securing a majority stake in New York’s iconic Plaza hotel for $600 million plans to bring the luxury property brand to the UAE in the near future.
“My dream has been to build a brand of Plazas globally like the Ritz Carlton, but with uber luxury and brands unique to the Plaza, like the Palm Court and The Oak Room,” Shahal Khan, founder of Dubai-based White City Ventures, told The National by email. “We are ready to close, and I look forward to opening a plaza in Abu Dhabi soon thereafter ... by 2020 I’ll open one in the UAE. Also one in China.”
Mr Khan and other investors have secured a deal with the Indian conglomerate Sahara India Pariwar, controlled by Subrata Roy, and will close the deal by June 25, according to The Real
Deal, which was first to report on the agreement last week.
The Sahara Group has a controlling stake in the landmark hotel, which it bought in 2012. Minority owners in the property include Ashkenazy Acquisition Corporation and Prince Alwaleed bin Talal’s Kingdom Holding, with each holding a 12.5 per cent stake in the hotel. Sahara, which previously owned Grosvenor House in London, has been trying to sell its stake in the Plaza, because its chairman, Mr Roy, is under pressure from the Indian government, which has ordered him to return billions of dollars to investors, according to Bloomberg.
Mr Khan told The National he is financing $415m of the purchase amount of the 111-yearold Plaza and the remaining portion with equity. “I can confirm we have reached an agreement…We are also removing the loan of HBJ [Sheikh Hamad bin Jassim bin Jaber Al Thani] and waiting for approvals on that,” Mr Khan said.
Last year, the billionaire former Qatari prime minister became a senior creditor on the property after acquiring a
mortgage on it, according to a Bloomberg report.
Whether Ashkenazy Acquisition Corp and Kingdom Holding accept or challenge the agreement remains to be seen.
The hotel, which is considered a trophy asset by investors, was once owned by US President Donald Trump, who bought it in 1988 for $390m. Mr Trump was forced to offload the Plaza, which was facing bankruptcy in 1992. The hotel has been managed
by Fairmont Hotels & Resorts, a unit of France’s Accor since 1999.
Mr Khan said he intends on visiting the UAE this summer as part of his plans to eventually bring the brand to the country.