T
he Sultan of Brunei is in talks to purchase the historic Pierre Hotel in New York City, where Commerce Secretary Howard Lutnick owns a stunning triplex penthouse apartment. The sultan, Hassanal Bolkiah, is partnering with Essam Khashoggi, brother of the late Saudi arms dealer Adnan Khashoggi. This deal could be worth around $2 billion for the entire property, which includes 189 rooms, retail space, and restaurants.
The Pierre Hotel has been a favorite among A-listers and industry titans since its opening in 1930. The hotel's shareholders own the property and have leased it to India-based Taj Hotels Resorts and Palaces since 2005. Lutnick is a shareholder but not on the board. He purchased the penthouse triplex for $44 million in 2017, significantly below the original asking price.
Real estate broker Newmark Group, led by Doug Harmon, is advising on the sale of the Pierre. The deal could involve the entire property or just some of its co-ops, which number around 80. If the new owner decides to renovate, it may take up to five years for the co-op owners to return.
The Pierre has a rich history, having hosted celebrities like Coco Chanel, Sophia Loren, and Audrey Hepburn. The hotel's iconic status is reflected in its association with glamour and sophistication. However, the sale of the property will ultimately determine the fate of its co-op owners, who may face displacement or significant disruption during any renovation process.
