First Free Story (1 of 3)

More travel executives get their mission-critical industry news from Skift than any other source on the planet.

Already a member?

Ashkenazy Acquisition Corp. and Saudi Prince Alwaleed bin Talal’s Kingdom Holding Co. sued the majority owners of the Plaza Hotel in midtown Manhattan, claiming they’re reneging on a deal that gives them the right of first refusal on the sale of the property.

Sahara US Corp., which owns a 70 percent stake in the hotel, demanded a second deposit and has been negotiating with other parties, contrary to its agreement that binds it to sell the property to KA Plaza Holdings LLC, a joint venture of Ashkenazy and Kingdom Holding, according to a complaint filed in New York state court Friday.

Shahal Khan, founder of Dubai-based family office White City Ventures, confirmed earlier this month that he had an agreement to acquire the hotel along with Kamran Hakim, of New York landlord Hakim Organization. They agreed to pay $600 million for the hotel in a deal that was set to be completed on June 25, and talked up plans to use the hotel to launch a global brand.

KA Plaza asked a judge to issue a permanent injunction barring a sale to anyone but it.

©2018 Bloomberg L.P. This article was written by Gillian Tan from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Photo Credit: The Plaza Hotel's owners are in dispute over a new bid to purchase the iconic New York City landmark hotel. Fairmont Hotels & Resorts