Hilton Worldwide Holdings Inc. has sold the Waldorf Astoria New York to Anbang Insurance Group Co. Ltd. for $1.95 billion. The proceeds of the sale, which just closed, are being used to add five landmark properties to Hilton Worldwide’s owned portfolio.
As part of its long-term relationship with Anbang, Hilton Worldwide will continue to operate the Waldorf Astoria New York under a 100-year management agreement. Anbang also plans to complete a major renovation to restore the property to its historic grandeur.
“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 Christopher J. Nassetta, president and CEO, Hilton Worldwide. “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.”
Hilton Worldwide has signed agreements to redeploy the proceeds of the sale to acquire the following properties in strategic resort and urban locations:
- Hilton Orlando Bonnet Creek in Orlando, FL (1,001 rooms)
- Waldorf Astoria Orlando in Orlando, FL (498 rooms)
- The Reach, A Waldorf Astoria Resort in Key West, FL (150 rooms)
- Casa Marina, A Waldorf Astoria Resort in Key West, FL (311 rooms)
- Parc 55 in San Francisco, CA (1,024 rooms)
The Parc 55, which represents over one third of the purchased portfolio by number of rooms, will be a new addition to the Hilton Hotels & Resorts brand that will be managed by Hilton Worldwide. The other acquired hotels are currently managed by Hilton Worldwide.