Waldorf Astoria NY $1.95bn sale under scrutiny

The US$1.95 billion deal by Hilton Worldwide to sell the Waldorf Astoria New York hotel to a Chinese company has caught the attention of officials in the US over security concerns.

Hilton announced the sale earlier this month, with China's Anbang Insurance Group set to pay the world-record price for a hotel.

However, with the hotel being a popular option for many heads of state, including President Obama, as well as the residence for the US ambassador to the United Nations, Samantha Power, the deal is being assessed for its security implications.

“We are currently in the process of reviewing the details of the sale and the company's long term plans for the facility,” Curtis Cooper, spokesman for the US Mission to the United Nations told Reuters.

“Any future decisions about the nature of that relationship (with the Waldorf Astoria) would need to factor in costs, the company's plans for the facility, the needs of the United States government and the US Mission to the UN, and any possible security concerns.”

Hilton has a management agreement to continue to operate the hotel for 100 years. The hotel is also set to undergo a major renovation.

The Waldorf Astoria New York opened in its current site in Manhattan, New York in 1931 and became the flagship hotel for the luxury Waldorf Astoria brand, which is now present in 27 destinations, including Dubai and Ras Al Khaimah.

Hilton Worldwide has said that it will use the proceeds from the sale to acquire additional hotel assets in the U.S. in one or more transactions, which will be finalised and announced at a later date.