Hilton Worldwide reached an agreement to sell New York’s iconic Waldorf Astoria hotel to Beijing-based Anbang Insurance Group for $1.95 billion.
Under the agreement, Hilton will retain a 100-year management contract, and the 1,413-room hotel will receive a major renovation, the companies said Monday.
Hilton CEO Christopher Nassetta said earlier this year that the hotel company would consider selling all or part of the hotel to free up cash for expansion purposes. Hilton has owned the property since 1972 and turned Waldorf Astoria into a luxury chain in 2006.
The Waldorf Astoria brand today includes 28 hotels, including the Arizona Biltmore, the Grand Wailea in Maui and properties in Chicago, Beijing, Amsterdam and Jerusalem.
The original Waldorf opened in New York in 1893, and the Astoria was built next door four years later. The hotel, which invented the concept of room service, opened at its current Park Avenue location in 1931 after the old hotel was razed to clear space for the Empire State Building.
At $1.95 billion, the Waldorf Astoria is selling for about $1.38 million per room.