Eight years after buying the Plaza Hotel in New York, Israeli-owned company, Elad said that it would receive NIS 1.6 billion ($400 million) for its 60% stake in the hotel, and that its free cash flow from the sale was NIS 1 billion. Elad is controlled by Yitzhak Tshuva. Tshuva's partner, Kingdom Holdings Co., which is controlled by Saudi Prince Alwaleed bin Talal, will receive the balance of the proceeds.
Tshuva bought the West Side luxury hotel, which overlooks Central Park, for $675 million eight years ago. After three years of extensive renovations and upgrades, supervised by Tshuva's daughter, architect Gal Naor, at a cost of $300 million, the Plaza was reopened in 2008.
Following the renovations, the Plaza has 182 condominiums, 130 hotel rooms, 152 condo hotel rooms, and a shopping center. According to US media reports, Elad sold condominiums in the project for $1.5 billion, generating $500 million in profits.
Following the sale, Elad will own 50% of the Plaza brand, and Sahara Group and Kingdom will own 50%. Elad said that Kingdom subsidiary Fairmont Hotels & Resorts Inc. would continue to operate the hotel, and that Kingdom would own 25% of the project after the sale.