Hilton to Sell Waldorf Astoria New York to China’s Insurer Anbang

Hilton Worldwide Holdings Inc. announced Monday that it has entered into an agreement with Anbang Insurance Group Co. Ltd. to sell the Waldorf Astoria New York hotel to the Chinese insurer.

Under the agreement, Anbang will purchase the iconic luxury hotel for 1.95 billion U.S. dollars, Hilton Worldwide said in a statement.

Hilton Worldwide intended to use the proceeds from the sale to acquire additional U.S. hotel assets, with these acquisitions to be announced later, according to the statement.

As part of this long-term strategic partnership, 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 to restore the property to its historic grandeur, said the statement.

“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,” said Christopher J. Nassetta, president and chief executive officer of Hilton Worldwide.

Shares of Hilton Worldwide initially moved higher following the announcement, but slipped 0.66 percent to trade at 24.16 dollars apiece around midday.

The Waldorf Astoria New York, located in midtown Manhattan, is the flagship hotel of Hilton Worldwide’s rapidly-expanding luxury brand, Waldorf Astoria Hotels & Resorts, and has been favored by visiting politicians, business leaders and celebrities.

Waldorf Astoria Hotels & Resorts has increased its footprint more than five times to a portfolio of 27 landmark destinations since 2007, including Beijing, Shanghai, Dubai and Amsterdam, according to the statement.