India's Sahara Group plunks down $800 million for two New York hotels

India's Sahara Group, the real estate-to-financial services major, has completed the acquisition of two iconic New York hotels: New York Plaza and Dream New York -- both based near Manhattan's Central Park, for a whopping total of $800 million. The Group, which had acquired Grosvenor House in London in 2010, is said to be now looking at picking up some other landmark properties in New York to build up a portfolio of luxury hotels.

It will acquire a 75% stake in Plaza Hotel for $570 million, while Kingdom, the investment vehicle of Saudi billionaire Prince Alwaleed bin Talal, will hold a 25% stake after a complex transaction. Similarly, Sahara has bought Dream Downtown, owned by New York hotelier Vikram Chatwal for $220 million.