Waldorf Astoria To Be Gutted, Converted To Condos

(RTTNews) - New York's landmark Waldorf Astoria hotel will be shut for up to three years starting spring 2017 as its Chinese owner Anbang Insurance Group Co. plans to convert most of its 1,413 hotel rooms into luxury condominiums, according to media reports.

The restoration plan for the landmark hotel on Park Avenue, New York, is said to include the removal of up to 1,100 hotel rooms and the elimination of hundreds of hotel jobs, including room-service, housekeeping and other hospitality jobs. The luxury hotel, which has about 1,500 employees, is managed by Hilton Worldwide Holdings, Inc. (HLT).

According to the Wall Street Journal, Anbang and Hilton have reached severance agreements with hundreds of hotel workers at a cost of $100 million or more.

When Waldorf Astoria reopens after the restoration, it will reportedly feature a smaller hotel with between 300 and 500 guest rooms upgraded to luxury standards. The remaining units will be sold as condominiums.

In February 2015, Anbang acquired the Waldorf Astoria for $1.95 billion, a record price for a U.S. hotel. The Chinese company had indicated that it plans to convert most of the property into luxury residential apartments to "reflect ts culture and social status."