The Sultan of Brunei has expressed an interest in two prominent New York hotels, put up for sale by India’s troubled Sahara Group.
An investment firm affiliated with the Sultan has offered to pay $2 billion for New York’s famous Plaza Hotel and Dream Hotel, and London’s Grosvenor House hotel.
Sahara chairman Subrata Roy has been trying to offload the three hotels to fund a bail bond imposed by the Indian Supreme Court.
Roy has been held without bail for the last five months after being charged with contempt of court after failing to repay billions of dollars to investors who were sold illegal bonds.
Roy’s lawyer said talks have been "very effective."
Representatives for the Sultan had been in discussions with Sahara throughout the summer and an agreement may be reached by next month according to a WSJ.com report.
The Sultan’s luxury hotel group the Dorchester Collection has come under fire due to Brunei’s tough anti-gay laws with many high-profile celebrity customers boycotting the Beverly Hills Hotel and other Dorchester properties.
A hotel analyst said the iconic New York Plaza Hotel’s reputation could be affected.
"Absolutely there would be protests and talks of boycotts, just like in L.A.," said Sean Hennessey, chief executive officer of Lodging Advisors hospitality consultants.
