Sahara Group to buy New York's Plaza Hotel: Report

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Sahara Group is set to buy New York's landmark Plaza Hotel for $570 million, The Times of India reported on Tuesday.

The deal for the Plaza, the 105-year-old luxury hotel near New York's Central Park, is expected to be announced by the end of this month, The Times reported, citing a source close to the talks.

The Plaza is jointly owned by Elad Properties, an Israeli-owned real estate company, and Saudi-based Kingdom Holdings Co, according to the hotel's website. It has been managed by Fairmont Hotels & Resorts Inc since 1999.

Elad, has agreed to sell its stake to Sahara Group, the Times reported, citing a source.

Kingdom, the investment vehicle of Saudi billionaire Prince Alwaleed bin Talal, will hold a 25 percent stake once the deal is completed, according to the report.

The report also said Fairmont would continue to operate the Plaza for two years before handing over control to Sahara.

Sahara could not be reached immediately for comment. Elad, Fairmont and Plaza officials did not immediately return calls seeking comment.

Sahara bought London's Grosvenor House Hotel in 2010 and is in negotiations to buy out some Marriott hotels in London, according to the report.