7 June 2015 – Sunday Times
Brothers clinch landmark hotels
Two billionaire brothers have taken control of the Grosvenor House in London and two other luxury hotels in New York through an $850m (£550m) debt deal.
David and Simon Reuben, whose empire stretches from data centres to horse racing, clinched the purchase of two loans against the properties from Bank of China late last week. They are understood to have given a four-month extension to the hotels’ embattled owner, the Indian conglomerate Sahara Group. Sahara, run by the controversial entrepreneur Subrata Roy, bought the Grosvenor House and the Dreams and Plaza hotels in New York between 2010 and 2012.
It funded the deals with debt from Bank of China, but faced losing the assets after defaulting on the American part of the loans last year. The default is understood to have been triggered when Dreams, managed by the playboy Vikram Chatwal, missed an earnings target. Separately, Roy, 66, was arrested in India more than a year ago after Sahara allegedly failed to refund billions of dollars to investors in a bond programme.