Hilton Worldwide Holdings Inc. announced last week that it has closed its previously-announced sale of the Waldorf Astoria New York hotel to Beijing-based Anbang Insurance Group Co. Ltd. for $1.95 billion.
As part of its long-term relationship with Anbang, Hilton Worldwide will continue to operate the Waldorf Astoria under a 100-year management agreement. Anbang also plans to complete a major renovation to the hotel, according to Hilton’s Feb. 11 announcement.
Anbang Insurance earlier announced on its website on Feb. 2 that its acquisition of the Waldorf Astoria has been formally approved by the Committee on Foreign Investment in the United States (CFIUS) and that the transaction has formally completed all relevant procedures.
CFIUS is an inter-agency committee chaired by the Secretary of the Treasury. The committee is authorized to review transactions that could result in control of a U.S. business by a foreign person, in order to determine the effect of such transactions on the national security of the United States, according to the U.S. Department of the Treasury website.
The deal’s closing comes on the heels of another New York hotel acquisition by a Chinese insurer. Starwood Capital said on Feb. 9 that it is selling its new Baccarat Hotel in New York City to an affiliate of Sunshine Insurance Group. The Beijing-based Sunshine Insurance is reportedly paying more than $230 million for the 114-room hotel, which is scheduled to open its doors in March.
Was this article valuable?
Here are more articles you may enjoy.