The Plaza, a landmark Manhattan hotel property, has changed hands for $765 million. Closely held Israeli real estate investor El-Ad Properties bought the 807-room property from joint owners Millennium & Copthorne Hotels and Kingdom Investments.
The joint venture had purchased the property for $325 million nine years ago from an entity led by real estate investor Donald Trump. The new owners are expected to convert many of the Plaza's suites into luxury apartments.
The gross profit on the sale totaled roughly $440 million, or a return of 135%. The sale price per room was approximately $838,000 — a record for a New York City hotel property. However, the hotel still posted a pre-tax loss of $900,000 in 2003 due to rising expenses and Manhattan's soft lodging market.
The Plaza opened in 1907 and has provided the setting for many well-known movies, including “The Great Gatsby” and “Home Alone II.” Located at the corner of 59th Street and Central Park South in the Plaza District, the hotel was designed by noted architect Henry Janeway Hardenburgh.
Cushman & Wakefield's capital markets group arranged the sale of the property, representing the buyer and the seller.