Hilton completes divestment of Waldorf Astoria New York for $1.95bn


Hilton

Hilton Worldwide Holdings has completed the divestment of Waldorf Astoria New York to Anbang Insurance Group for $1.95bn.

As part of a 100-year management agreement, Hilton Worldwide will continue to operate the 1,413-room property.

The hotel features cosmopolitan restaurants (including Peacock Alley, Bull and Bear Prime Steakhouse and Oscar's), bustling lounges and bars, the Guerlain Spa, more than 60,000ft² of high-tech equipped function space, a business centre and boutiques.

Hilton is using the proceeds from the deal to acquire five properties for around $1.76bn, including four in Florida and one in California.

"These transactions will enable us to unlock the embedded value of the Waldorf Astoria New York and acquire great institutional quality assets that we expect will drive significant incremental value for the company."

The properties being acquired include 1,001-room Hilton Orlando Bonnet Creek; 498-room Waldorf Astoria Orlando; 150-room The Reach; 311-room Casa Marina; and Waldorf Astoria resorts in Key West of Florida.

Hilton Worldwide president and CEO Christopher Nassetta said: "These transactions will enable us to unlock the embedded value of the Waldorf Astoria New York and acquire great institutional quality assets that we expect will drive significant incremental value for the company.

"Our relationship with Anbang will ensure the Waldorf Astoria New York will continue to be a marquee hotel for the Waldorf brand long into the future, and will enable Hilton Worldwide and Anbang to build on the hotel's rich legacy and traditions."

In addition, the deal will comprise acquisition of 1,024-room Parc 55 property in San Francisco of California.

The Parc 55 is said to be the new addition to the Hilton Hotels & Resorts brand, which will be managed by Hilton Worldwide., while other properties being acquired are currently managed by Hilton Worldwide.


Image: Hilton Worldwide will continue to operate the Waldorf Astoria New York under a 100-year management agreement. Photo: courtesy of Hilton Worldwide.