The deal would need the go ahead of Israeli-owned El Ad US Holding Inc and their partner in the hotel, Kingdom Holding Co, that is owned by Saudi Arabia’s richest tycoon Prince Alwaleed bin Talal.
El Ad is reportedly examining the proposal and is yet to mediate on the matter with Kingdom Holding, as per the report.
Sahara’s offer encompasses the hotel portion of the Plaza, inclusive of the 230 rooms, at $400 million, with the remaining $200 million for the retail portion of the hotel. The retail portion has a banquet hall, fitness center and other common areas wholly owned by El Ad. El Ad is the US real-estate arm of Israeli entrepreneur Isaac Tshuva.
Sahara entering into the buyout fray will require the termination of the present management by Fairmont Hotels and Resorts. They have been managing the hotel since 1995. Sahara wants itself to manage the property.