The Chinese insurance group, Anbang has acquired Hilton Worldwide Holding’s flagship Waldorf Astoria New York Hotel for $1.95 billion, making it one of the largest property investments into the US by a Chinese investor.
The 1232- room luxury hotel located on Park Avenue is one of Manhattan’s signature properties. Under the partnership, Hilton will continue to operate the property for the next 100 years, and undertake renovations to restore the luxury hotel to its historic grandeur, the hospitality group said in a 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,” Christopher J. Nassetta, president and chief executive officer, Hilton Worldwide said in a statement. “This relationship represents a unique opportunity for our organizations to work together to finally maximize the full value of this iconic asset on a full city block in midtown Manhattan.”
The deal by Beijing-based Anbang, which manages around $700 billion yuan worth of assets, follows other high-profile property acquisitions by Chinese insurance companies after last year’s regulatory reforms in China allowed domestic insurance companies to invest in real estate. Earlier this year in June, China Life Insurance purchased the Canary Wharf Tower, a prime office property in London, for $1199 million, and in 2013 Ping An acquired London’s Lloyd’s office building for £260 million.
Following the sale, Hilton is also looking to acquire additional hotel assets in the US, according to the statement.