Hilton Worldwide last week reached an agreement to sell New York's storied Waldorf Astoria to Beijing-based Anbang Insurance Group for $1.95 billion. Hilton will retain a 100-year management contract, and the 1,416-room hotel will receive a "major" renovation, the companies said.
Hilton CEO Christopher Nassetta said earlier this year that the hotelier would consider selling all or part of the Waldorf to free up cash for expansion purposes.
Hilton has owned the property since 1972 and used the brand to start the Waldorf Astoria Collection of luxury hotels in 2006. That group of 27 properties includes the Arizona Biltmore, Hawaii's Grand Wailea and properties in Chicago, Beijing, Amsterdam and Jerusalem.
Hilton declined to elaborate on the scale or timing of the proposed renovations.
The hotel dates to the late 19th century. The original Waldorf opened in 1893, and the Astoria was built next door four years later. The hotel shuttered its original location in 1929 to clear space for the Empire State Building and reopened at its current Park Avenue location in 1931. Hilton has managed the property since 1949.
The hotel generated $15 million in net income for the year ended June 30, Hilton said in a Securities and Exchange Commission filing last week.
At $1.95 billion, the Waldorf Astoria is selling for about $1.4 million per room.