Hilton Worldwide has closed the sale of the Waldorf Astoria New York, which Chinese firm Anbang Insurance Group Co. Ltd has purchased for US $1.95 billion.
The proposed deal was originally announced in October and was set to make it the most expensive hotel ever sold.
Now that it has been confirmed, Hilton Worldwide has revealed that it is using the proceeds of the sale to purchase five properties across the US: Hilton Orlando Bonnet Creek in Orlando (1001 rooms), Waldorf Astoria Orlando in Orlando (498 rooms), The Reach, A Waldorf Astoria Resort in Key West (150 rooms), Casa Marina, A Waldorf Astoria Resort in Key West (311 rooms), and Parc 55 in San Francisco (1024 rooms).
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The purchase price of the five hotels is US $1.76 billion, and Parc 55 will be operated under the Hilton Hotels & Resorts brand.
Hilton Worldwide will also continue to operate the Waldorf Astoria New York hotel under a 100-year management agreement, with Anbang set to complete a major renovation project on the property.
"These transactions will enable us to unlock the embedded value of the Waldorf Astoria New York and acquire great institutional quality assets that we expect will drive significant incremental value for the company," said Hilton Worldwide president and CEO Christopher J. Nassetta.
“Our relationship with Anbang will ensure the Waldorf Astoria New York will continue to be a marquee hotel for the Waldorf brand long into the future, and will enable Hilton Worldwide and Anbang to build on the hotel's rich legacy and traditions.”
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