(MENAFN - Arab News) Kingdom Holding Company (KHC), chaired by Prince Alwaleed bin Talal, has announced the completion of a 575 million transaction on The Plaza Hotel in New York, with KHC retaining a 25 percent equity ownership, and realizing a net profit of 32.9 million.
As part of the transaction, Sahara India Pariwar and Fiverivers Properties acquired a 75 percent interest and Kingdom Holding rolled over its investment in the property.
Prince Alwaleed said: "We remain committed to New York's iconic Plaza Hotel and look forward to a long partnership with Sahara India Pariwar and Sant Chatwal as we work together to reinforce The Plaza's positioning as one of North America's pre-eminent luxury hotels."
As part of the transaction, Fairmont has signed a new hotel management contract and Hampshire Hotels & Resorts will supervise the management of the food and beverage operations in the building.
The Plaza originally opened in 1907 and currently operates as a 282-room hotel, including 152 condo-hotel units. The building also encompasses 180 residential condominiums and 60,000 square feet of vibrant, high-end retail.
The ultimate luxury lifestyle destination, the new Plaza features lavish hotel rooms, private residences, destination restaurants, an exclusive retail collection, and state-of-the-art meeting and event spaces.
The Plaza offers 102 elegant suites in seven distinct designs and a five star service. Each guestrooms and suites have been designed to reflect the grace of a glorious past, and updated with contemporary conveniences.
The hotel underwent a 400 million renovation and KHC announced its reopening in 2009. Fairmont Raffles is an integral component of KHC's diverse hotel portfolio.
In 2010, KHC announced an 847 million transaction with Qatari Diar involving Fairmont Raffles Holdings International (FRHI).
Under the agreements, Voyager has acquired for a combination of cash and other consideration a 40 percent shareholding in FRHI. In addition, QDHP has undertaken to provide FRHI with a number of future management contracts for hotels that will be branded either Fairmont, Raffles or Swissotel.
In 2006, KHC and Colony completed the acquisition of Fairmont Hotels and Resorts, which was combined with the Raffles Hotels Group.