Hilton to sell Waldorf Astoria New York to Chinese insurer

Hilton Worldwide Holdings Inc. has agreed to sell its most prestigious hotel, Manhattan’s Waldorf Astoria, for $1.95 billion to a Chinese insurance company, the hotel operator said Monday.

The sale price is among the highest ever for any hotel and represents the latest sign of intense international demand for luxury hotels and other trophy properties in major global cities. The Waldorf Astoria’s price of $1.3 million a room is also among the highest ever paid in the U.S. on a per-room basis.

The acquisition is the first major deal in the U.S. for Anbang Insurance Group Co., which beat out at least two other bidders for the property, according to a person familiar with the matter.

For months, Hilton HLT, -2.04%   has been weighing its options for the Waldorf Astoria on Park Avenue, including converting hundreds of its nearly 1,500 rooms to condos and reinvesting the proceeds into the hotel. In recent weeks, Hilton was leaning toward an outright sale of the property. But before the hotel company could begin the formal marketing process, Anbang and at least two other groups offered pre-emptive bids around the $2 billion mark, this person said.

Hilton will continue to operate the hotel under a 100-year management contract. The company plans to use the proceeds of the sale to acquire other properties, in part to avoid a hefty tax charge on the transaction.

Source: The Wall Street Journal  October 16th, 2014 Craig Karmin