NEW YORK — Beijing, China-based Anbang Insurance Group Co. Ltd. has entered into an agreement with Hilton Worldwide Holdings Inc. (NYSE: HLT), under which Anbang has agreed to purchase the iconic Waldorf Astoria New York hotel for $1.95 billion.
Under terms of the sale, Anbang will grant Hilton Worldwide a management agreement to continue to operate the property for the next 100 years, and the hotel will undergo a major renovation.
The Waldorf Astoria New York is the flagship hotel of Hilton Worldwide’s luxury brand Waldorf Astoria Hotels & Restaurants. The property opened in 1931, has 1,413 rooms and covers a full city block on Manhattan’s Park Avenue. Anbang is paying approximately $1.4 million per room for the Waldorf Astoria, according to MarketWatch.
Since 2007, the luxury brand has grown its portfolio to 27 properties, including those in Amsterdam, Beijing, Chicago, Dubai, Shanghai and other international destinations.
Hilton Worldwide intends to use the proceeds from the sale to acquire additional hotel assets in the United States.
The late Conrad Hilton, founder of Hilton Worldwide, famously called the Waldorf Astoria New York “The Greatest of Them All.” The hotel is considered by many to be an Art Deco masterpiece and an internationally recognized symbol of elegance and grace.
The hotel features restaurants (including Peacock Alley, Bull and Bear Prime Steakhouse, and Oscar’s), lounges and bars, the Guerlain Spa, more than 60,000 square feet of function space, a business center and boutiques.
Hilton Worldwide’s portfolio of 11 global brands is comprised of more than 4,200 managed, franchised, owned and leased hotels and timeshare properties, with more than 690,000 rooms in 93 countries and territories, including Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, DoubleTree by Hilton and Embassy Suites Hotels.
The insurance company Anbang has more than 30,000 employees and more than 700 billion yuan, or approximately US$114.2 billion, in assets. It provides financial and insurance services and products to more than 20 million customers, including life insurance, pensions, health insurance, property and casualty insurance, and asset management.
In 2007, Blackstone Group LP took Hilton private in a $26.7 billion deal, including debt. The transaction was one of the largest leveraged buyouts before the 2008 financial crisis. In December 2013, Hilton Worldwide went public again, raising over $2.3 billion in its initial public offering.
Hilton Worldwide’s stock price closed at $24.21 per share on Monday, Oct. 6, up from $21.50 per share on Dec. 12, 2013.
— Scott Reid