Hilton Sells Waldorf Astoria to Chinese Insurer for $1.95B

In the largest hotel sale ever, Beijing insurance firm Anbang has agreed to purchase Hilton’s flagship luxury property.

The Waldorf Astoria New York has long been Hilton’s flagship luxury hotel, but on Monday, Hilton Worldwide announced an agreement to sell the property to Beijing-based Anbang Insurance Group for $1.95 billion. Hilton is not completely kicking the Waldorf out of its family. Under the agreement, Hilton will continue to manage the establishment for the next 100 years.

“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 Hilton Worldwide President and CEO Christopher J. Nassetta. “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.”

Although this is the largest amount ever paid for a hotel, according to The Wall Street Journal, it isn’t the largest amount on a per-room basis. While Anbang, which has more than 30,000 workers and $114 billion in assets, is paying $1.4 million per room at the Waldorf, recent sales of New York’s Carlyle and Plaza luxury hotels garnered higher per-room prices. Such astronomical figures, of course, pale in comparison to the $3 million Conrad Hilton paid to acquire the Waldorf in 1949.

Hilton Worldwide plans to use proceeds from the sale to purchase hotel assets throughout the U.S.

[Photo: Waldorf Astoria]