Hilton made quite a deal by selling its crown jewel Waldorf Astoria hotel in New York City to a Chinese insurance company for $1.95 bullion or $1.3 million dollar per room.
There was some chatter back in March (read more here) that Hilton was contemplating selling the property. Seems that the $1.95 billion was enough to close the deal. Hilton has signed 100 years management contract for the hotel.
You can access Waldorf Astoria New York’s website here.
Here’s an excerpt from WSJ (access the full article here):
For months, Hilton 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.
It is unclear if Anbang plans to convert any of the rooms to private residences, but the insurer is expected to invest in upgrading the 1931 property.
All the hotel companies are shedding assets and selling properties to real estate investors and singing long term deals to manage these properties.