The Plaza, In Case You Were Wondering, Is On Sale For About $600 Million
It was all over the news this weekend that Manhattan's iconic Plaza Hotel is about to change hands for the fourth time in almost twenty years. That's a lot of paperwork, and also, a lot of instability for a hotel that, as much star power as it has, still has to compete with all the sleek new hotels popping up all over the place in New York.
The new owner, reports The Real Deal, an Indian-based company known as the Sahara Group, has allegedly paid a 10% advance to the hotel's current owner, Israel-based El Ad (who bought the hotel for $675 million in 2004).
The total price will be $600 million, which includes $400 million for the hotel and $200 million for the retail spaces. While the Plaza must be flattered that it's got billionaires from overseas fighting over it, we can't help but wonder what kind of future this spells for the old girl.
The Sahara Group has reportedly specified that, when they take over, they'll be kicking hotel's current management company to the curb. No word on whether Sahara Group plans to manage the hotel by itself, or bring in yet another third party operator. Now, this could, of course, mean that they have some drastic changes in mind for the hotel (a nightclub? more renovations? who knows?), but we're wondering if that's even a good thing.
With the Oak Room now closed down, and the new Todd English food court having been a success, it does feel a bit like the Plaza is in the midst of a transition. Digital concierges aside, we just think she should stick to her roots and not try to get too flashy in an attempt to stay "modern" (which she isn't).
For now, though, we'll just have to see what changes (if any) the Sahara Group has planned for its new property.