Report: Plaza Hotel Deal May Not Happen

NEW YORK—The $600-million sale of the Plaza Hotel may not happen, according to a report by Bloomberg News. Ashkenazy Acquisition Corp. and Kingdom Holding Co. have exercised a right of first refusal to match a recent offer for the property, according to a person with knowledge of the matter.

Last week, Shahal Khan, founder of Dubai-based family office White City Ventures, confirmed that he had an agreement to acquire the hotel with Kamran Hakim of New York landlord Hakim Organization. They agreed to pay $600 million for the hotel in a deal that was to be completed on June 25.

Ashkenazy acquired a minority stake in the hotel and the right to buy the property last May. Ashkenazy and Kingdom have less than two weeks to come up with a deposit and proof of funds for the total or their deal will be canceled, said the person, who Bloomberg reported asked not to be identified because the details of the deal are private.

Majority owner Sahara India Pariwar has been trying to sell its stake, in part because its chairman, Subrata Roy, is under pressure from the Indian government, which has ordered him to return billions of dollars to investors.

Representatives of Ashkenazy Acquisition, Kingdom Holding, White City Ventures and the Hakim Organization didn’t respond to Bloomberg’s requests for comment.

The hotel portion of the Plaza is managed by Fairmont Hotels & Resorts.