*****Foreign Investment to purchase an iconic landmark NYCs Waldorf Astoria***** Hilton To Sell NYCs Waldorf Astoria to Chinas Anbang Insurance for $1.95B Oct 6, 2014 - CoStar News Hilton Worldwide Holdings Inc. agreed to sell the Waldorf Astoria New York for $1.95 billion to Anbang Insurance Group Co. Ltd. of Beijing. The price comes to a stunning $1.38 million per room, believed to qualify as the highest price ever paid for a single hotel. As part of this long-term strategic partnership, Anbang will grant Hilton Worldwide a management agreement to continue to operate the property for the next 100 years, and the hotel will undergo a major renovation to restore the property to its historic grandeur. The 1,413-room, 1.68 million square-foot hotel is the flagship of Hilton Worldwides rapidly-expanding luxury brand, Waldorf Astoria Hotels & Resorts. The Waldorf Astoria New York was famously called The Greatest of the Them All by Hilton Worldwides founder, Conrad Hilton. At 47-stories, the hotel was the tallest hotel in the world when it opened in 1931. It was the first hotel to offer room service and is considered an Art Deco masterpiece. Hilton undertook a meticulous restoration of the hotel completed in the mid-1990s under the direction of architect Lee Jablin, managing partner of Harman Jablin Architects. It was named an official New York City Landmark in 1993. 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 brands world-class standards for generations to come. 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, said Christopher J. Nassetta, president and CEO of Hilton Worldwide. For the 12 months ended June 30, 2014, the Waldorf Astoria New York generated net income attributable to Hilton stockholders of $15 million and Adjusted EBITDA of $61 million, in each case net of management fees. Hilton Worldwide intends to repay an existing $525.0 million mortgage loan on the property in full and use the remaining proceeds from the sale to acquire additional hotel assets in the U.S. in one or multiple transactions as part of a like-kind exchange under Internal Revenue Code Section 1031. Hilton said the acquisitions will be finalized and announced at a later date. The sale of the Waldorf Astoria New York is expected to close by year-end. Copyright © 2014 CoStar News
Posted on: Fri, 10 Oct 2014 13:32:18 +0000
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