Hilton Worldwide Agrees To Sell Waldorf Astoria New York For $1.95 Bln

(RTTNews) - Hospitality company Hilton Worldwide Holdings Inc. (HLT) Monday said it has entered into an agreement with Anbang Insurance Group Co. Ltd. for Anbang to purchase the Waldorf Astoria New York, the flagship hotel of Hilton's luxury brand Waldorf Astoria Hotels & Resorts, for $1.95 billion.

Anbang, an insurance company based in Beijing, China, will grant Hilton a management agreement to continue to operate the property for the next 100 years. The hotel will undergo a major renovation to restore the property to its historic grandeur.

The Waldorf Astoria New York was famously called "The Greatest of the Them All" by Hilton Worldwide's founder Conrad Hilton. It is an Art Deco masterpiece and has been an internationally recognized symbol of elegance and grace for over a century.

The hotel features cosmopolitan restaurants, bustling lounges and bars, the Guerlain Spa, more than 60,000 square feet of high-tech equipped function space, a state-of-the-art business center and intriguing boutiques.

Christopher Nassetta, president and CEO of Hilton, said, "...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."

Since 2007, the Waldorf Astoria Hotels & Resorts brand has increased its footprint more than five times to a portfolio of 27 landmark destinations. This includes Amsterdam, Beijing, Chicago, Dubai, Jerusalem, Ras Al Khaimah and Shanghai.

Its pipeline of nine additional hotels includes key destinations like Bali, Bangkok and Beverly Hills.

Hilton plans to use the proceeds from the sale to acquire additional hotel assets in the U.S. in one or more deals as part of a like-kind exchange. These acquisitions will be finalized at a later date.

The company recently reported higher profit for its second quarter, boosted by strong revenue in all its segments. Further, the company also lifted its forecast for fiscal 2014 earnings per share.

HLT, which closed at $24.32, on Friday added 2.8 percent in pre-market activity.