The Sultan of Brunei is currently negotiating to buy the well-known Pierre Hotel in New York City. This hotel is notable for housing a stunning Triplex Penthouse owned by Commerce Secretary Howard Lutnick.
Hassanal Borkia, who is both the sultan and prime minister of a small Southeast Asian nation, is in talks alongside Essam Khashoggi, the brother of the late arms dealer Adnan Khashoggi, according to a source familiar with the situation.
Khashoggi is also related to Jamal Khashoggi, the journalist who was tragically killed in the Saudi Consulate in Turkey back in 2018.
The landmark hotel, located at 795 Fifth Ave. with a view of Central Park, was listed for sale last year and has been a popular spot for celebrities and industry leaders since it opened in 1930.
However, the process of selling its 189 rooms, retail spaces, and restaurants is complicated, and a deal is not yet finalized, according to insiders.
The Sultan is seen as a strong contender but there are others in the running, the source noted.
The hotel also contains around 80 cooperatives within its 41-story limestone façade, designed in a style reminiscent of Versailles.
The potential sale could involve the entire property, which is valued at approximately $2 billion, sources indicate.
This transaction might include some or all of the cooperatives as well.
“Right now, no one is really sure how this will turn out, but we’re definitely moving in one direction,” the source mentioned.
Efforts to gather comments from the Brunei Prime Minister’s office, the UN Mission in New York, and the embassy in Washington were unsuccessful.
The shareholders actually own the Pierre Hotel but have leased it to Taj Hotels since 2005. Sources have stated that while Lutnick is a shareholder, he is not part of the board.
Lutnick and his spouse, Allison, bought the luxurious Triplex Penthouse for $44 million in 2017, which was, quite notably, $81 million less than the initial asking price. The 12,000-square-foot unit was originally listed for $125 million back in 2013.
Interestingly, sources claim that the couple never actually lived in the property.
Newmark Group, with Doug Harmon leading the real estate team, is advising on this sale. Harmon recently oversaw the sale of the neighboring 800 Fifth Avenue to the Naphtari Group for about $820 million.
Some of Harmon’s major deals include the sales of Peter Cooper Stuyvesant Town and Starrett City for $5.45 billion and $905 million, respectively. He declined to comment on the Pierre deal.
Lutnick was previously the largest shareholder of Newmark Group.
Newmark, having recently gone public, is a spin-off of BGC Partners. Most of BGC’s voting rights are controlled by Cantor Fitzgerald.
Lutnick, who has led his financial firm for three decades, tragically lost his brother during the 9/11 attacks.
According to reports, Lutnick passed on leadership to his children last month, who are currently in training for leadership roles, similar to his experience in the Trump administration.
Cantor Fitzgerald did not respond to inquiries for comment.
Insiders revealed that the new hotel buyer will play a pivotal role in determining the future of the cooperative owners; any transaction must receive their approval. It’s possible for new owners to temporarily close the hotel and displace the cooperative owners.
“Certainly, it all comes out in the wash, but nothing is set in stone without shareholder approval,” the source pointed out.
If cooperative owners are forced to move out for extensive renovations, it might take up to five years for them to return, as evidenced by the long renovation of the Waldorf Astoria, which is now set to reopen in September after numerous delays.
“There’s a lot of fear, and no one is really discussing it,” another source said regarding the cooperative owners’ sentiments.
Nonetheless, some insiders assert that, while there are a few who prefer to stay, the compensation offered might be too good to pass up.
“Whatever the uncertainties, it’ll likely be worth it for them,” the source added.
The Pierre is long associated with sophistication and elegance.
Notable guests over the years have included Coco Chanel, who stayed there in 1932, and Sofia Loren. Other famous residents have ranged from Audrey Hepburn, who celebrated her Oscar win for “Roman Holiday” there, to Elizabeth Taylor, who married Eddie Fisher in 1959.
Other notable guests include Barbra Streisand, Joan Collins, and Karl Lagerfeld. The hotel has also made appearances in films, featuring in “Ocean’s Eight” where Anne Hathaway’s character checks in before the Met Gala.
John Paul Getty bought the Pierre in 1938, describing it as his only “ground asset,” and partially converted it into a cooperative.
Today, cooperative owners at the hotel also include fashion designer Tory Burch, media mogul Shari Redstone, musician Art Garfunkel, and former Disney executive Michael Eisner.
