A fund controlled by the Gulf state of Qatar has emerged as a surprise buyer of New York’s famed Plaza Hotel, according to people familiar with the matter.
Katara Hospitality, which buys and manages hotels around the world for the Qatar government, has acquired full ownership of the 1907 property for about $600 million, these people said.
The hotel in the southeast corner of Manhattan’s Central Park is one of the world’s most famous lodgings. It has been featured in novels such as “The Great Gatsby” and films including Alfred Hitchcock’s “North by Northwest.” Previous owners include hotelier Conrad Hilton and President Donald Trump, who once compared it to the Mona Lisa.
Katara bought the 75% stake held by India’s Sahara Group and a 25% stake from New York real-estate investor Ashkenazy Acquisition Corp. and its partner Saudi Prince al-Waleed bin Talal. The deal, which closed on Monday, includes 282 guest rooms and the property’s retail space, say the people familiar with the transaction.
Representatives of Ashkenazy, Katara and Prince al-Waleed’s Kingdom Holdings didn’t respond to requests for comment.
Katara’s purchase marks the latest twist in a long-running global saga surrounding the Plaza Hotel’s ownership.
A group of investors led by Shahal Khan, founder of Dubai-based White City Ventures, and Kamran Hakim of the Hakim Organization, a large private New York landlord, reached a deal to buy the property around the end of April.
But about a week later, Ashkenazy and Prince al-Waleed exercised a right as minority owners to match any agreement to purchase Sahara’s majority stake. It is unclear why Ashkanazy and Prince al-Waleed didn’t follow through on their agreement to buy Sahara’s stake, or whether they were able to raise money to finance the acquisition.
Representatives of Ashkenazy and Prince al-Waleed’s Kingdom Holdings didn’t respond to requests for comment. Sahara and Katara couldn't be immediately reached for comment.
Sahara acquired its controlling stake in 2012 in a deal that valued the property at about $575 million. The Indian company has been trying to sell the Plaza for years. It heard from parties around the world but never completed a deal. Sahara last summer hired JLL Hotels and Hospitality Group to find a buyer. About 50 private-equity firms, foreign governments and other investors had expressed interest in the Plaza Hotel last year, say people familiar with the matter.
The Plaza’s prestigious guest list has included Marilyn Monroe and the Beatles, and it has hosted historic events for Hollywood stars and politicians. John F. Kennedy’s sister Patricia Kennedy held the reception after her wedding to Peter Lawford in the Plaza’s ballroom.
The sale of the Plaza Hotel was first reported by Reuters.
Write to Craig Karmin at craig.karmin@wsj.com and Keiko Morris at Keiko.Morris@wsj.com