The Price of Luxury: Waldorf Astoria To Be Purchased By Chinese Insurers
The Price of Luxury: Waldorf Astoria To Be Purchased By Chinese Insurers
Hilton Worldwide Holdings Inc has indicated it will be selling its prized Waldorf Astoria New York hotel to a Chinese insurance company for a record USD 1.95 billion which is one of the highest amounts per room to be paid for a US based hotel, according to a Reuters report. The Chinese insurance group in question is the Anbang Insurance Group Co Ltd.
The Chinese insurance group will pay USD 1.38 million per room for the Manhattan hotel which has been the epitome of style, luxury and the ultimate elegance. It has housed many presidents, legendary actors and celebrities in its time. "The hotel will undergo a major renovation to restore the property to its historic grandeur," Hilton was quoted as having said in a statement.
The Waldorf Astoria was purchased in 1949 by Conrad Hilton, who founded the Hilton hotel chain. This hotel was famously the setting for the Ginger Roger's movie Weekend in Waldorf and it has been the place where many top leaders and celebs have stayed at one point in time or another.
This is the latest icon in New York Properties to pass into Chinse hands afer the sale of One Chase Manhattan Plaza to Fosun International Limited controlled by Guo Guangchang,a Chinese billionaire. Anbang is based in Beijing and it manages around 700 billion yuans worth of assets as per its website. Reuters says the Chinese insurance group will recover its investment in 10 years.
Hilton plans to use the money released from the sale of this hotel to make more acquisitions. Its stock did not change much following the news."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 Nassetta, president and CEO of Hilton Worldwide, said in a statement.
Hilton Worldwide is the largest hotel group in the world as per the total number of rooms. It is now planning to enter other markets. The Waldorf Astoria NY was considered a flagship establishment for the Hilton chain of hotels. Hilton Worldwide currently has 27 operational hotels and 9 more coming up.
As times change, requirements change as well and Hilton Worldwide is no exception to this rule. The legendary and iconic hotel is passing into the hands of a large Chinese insurance group, but its identity as the US origin brand will pass into history. This iconic hotel will now change into a new avatar under Anbang's vision and leadership. Meanwhile, Hilton Worldwide will head to new markets and new challenges too.
