India firm eyes purchase of New York's Plaza

By Danny King
The Plaza hotelNew York's Plaza Hotel may change hands for the second time in eight years, as India-based Sahara India Pariwar is in discussions to buy the century-old property from Israel-based Elad Group for about $600 million, India's Economic Times reported.

The publication, citing a person familiar with the process, reported that Sahara India Pariwar would pay about $400 million for the property's 130 hotel rooms and 100 condominiums and another $200 million for the Plaza's retail space. Once the property is sold, Sahara India Pariwar would remove Fairmont Hotels & Resorts from hotel-management duties, according to the Economic Times. Fairmont has managed the hotel since 1999.

Elad Group representatives didn't immediately respond to an inquiry from Travel Weekly, while representatives at Sahara India Pariwar couldn't be reached Wednesday.

"The owners of the Plaza have not advised us of any pending transaction that would impact our management agreement at the Plaza," said Fairmont spokeswoman Lori Holland.

Elad Group, a division of Israel-based Tshuva Group, acquired the Plaza in 2004 for $675 million and spent another $400 million renovating the property before selling off some of the condominiums.

The Plaza, which was built in 1907 and overlooks Central Park, is the only New York hotel that's been named a National Historic Landmark.

Sahara India Pariwar acquired London's 494-room Grovesnor House in late 2010 for about $750 million.

Follow Danny King on Twitter @dktravelweekly. 
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