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Indian business conglomerate Sahara India Pariwar has established a big presence in the US hospitality industry by acquiring a 75 percent stake in The Plaza Hotel, New York City for about $570 million.

Leading real estate company El Ad Holdings that owned the property has retained the remaining 25 percent stake in the hotel which houses 230 rooms and retail space. El Ad Holdings is owned by Saudi billionaire Prince Alwaleed bin Talal.

Sahara India, with wide interests in sectors like financial services, life insurance, mutual funds, housing finance, infrastructure and housing and print and television news media, has also acquired Dream Downtown, owned by New York hotelier Vikram Chatwal for $220 million.

The two acquisitions have been taken place at a time when the New York City hotel real estate industry itself has become a highly attractive investment destination for global investors. According to Greg Rice, President of Solid Rock Advisors, a real estate consulting firm specialising in luxury resort and hotel transactions that advised El Ad Holdings in the Plaza Hotel deal, the New York hotel real estate sector is the "world's most liquid market and is excellent for capital preservation as it consistently outperforms inflation".

Rice has been quoted saying the hotel market is on the upswing and has not reached the pre-recession levels. "While luxury hotels in New York City in particular have been one of the harder hit segments of the hospitality industry recently, they will benefit from strong growth as room rates return to their peak levels," he told the media recently.

Fairmont Hotels & Resorts, which is owned by Kingdom Holding Co., will continue to operate The Plaza Hotel under a long-term agreement. The Plaza Hotel, located in Manhattan, adjacent to Central Park, has over the years hosted celebrity guests like Eleanor Roosevelt, the Beatles, Mark Twain and Groucho Marx.

For the record, Sahara India acquired Grosvenor House in London in 2010 and has been scouting for landmark hotel properties in New York and other world metros. Reports suggest the two new deals may be financed out of the 250 million pounds that Sahara India raised by pledging Grosvenor House.