Hilton Worldwide Sells Waldorf Astoria to Chinese Insurer For $1.95 Billion

People of all walks of life come to New York to feast their eyes on the majestic Waldorf Astoria hotel, but recently the company that owns it has sold the historic landmark for $1.95 billion.

Hilton Worldwide Holdings Inc. has agreed to see the flagship property from the company’s luxury brand to Chinese insurer Anbang Insurance Group Co. Ltd for the billion dollar price tag. Hilton Worldwide will continue to manage the hotel for the next 100 years as part of the deal.

The hotel will immediately go under a renovation process “to restore the hotel to its illustrious glory”. “We are very excited to be entering into this long-term relationship with Anbang, which will ensure that the Waldorf Astoria New York represents the brand’s world-class standards for generations to come,” Christopher J. Nassetta, president and chief executive officer, Hilton Worldwide, said. “This relationship represent a unique opportunity for our organizations to work together to finally maximize the full value of this iconic asset on a full city block in midtown Manhattan.”

Hilton Worldwide will use the proceeds from the sale to acquire additional hotel assets in the United States in one or more transactions as part of a like-kind exchange under Internal Revenue Code Section 1031. The Art Deco masterpiece has been a fixture of New York architecture for more than a century. With 60,000 square feet of high-tech equipped function space, a state-of-the-art business center and cosmopolitan restaurants (Peacock Alley, Bull and Bear Prime Steakhouse) — the Waldorf Astoria aims to continue to be the iconic building it was built to be.

SOURCE: CNBC