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Subrata Roy picks up Plaza Hotel in New York

Subrata Roy picks up Plaza Hotel in New York

Indian billionaire Subrata Roy has completed the purchase of the Plaza Hotel in New York for US$575 million.

Sahara group, controlled by Roy, also bought the luxury hotel Dream New York from hotelier Vikram Chatwal for US$220 million.

The hotels lie close to Central Park and Sahara, which bought Grosvenor House hotel in London two years ago, is reportedly looking at other landmark properties to build up a luxury hotel portfolio.

The 223-room Plaza has previously welcomed Eleanor Roosevelt, the Beatles, Mark Twain and Groucho Marx.

Considered North America’s Leading Luxury Hotel by the World Travel Awards, it was purchased from Israeli-owned realtor El Ad US Holdings.

Co-owner Kingdom Holding, a leading global investment firm controlled by Saudi billionaire Prince Alwaleed bin Talal, will retain a 25 per cent stake.

The latest acquisition follows a decision from the Indian Supreme Court to give Sahara group more time to refund $3 billion it had raised from investors through sale of bonds that were later found to be illegal.

Sahara has been ordered to initially deposit $939 million with the capital markets regulator.

The remaining money is to be paid in two installments by February.

Sahara was ordered on August 31st to refund the money in 90 days for failing to comply with financial regulations.