Real estate history was made this week when Hilton Worldwide Holdings Inc. agreed to sell Manhattan’s iconic Waldorf Astoria hotel to Anbang Insurance Group Co., a Chinese insurance company. The hotel had a $1.95 billion price tag, ranking it among the highest transactions in hotel history, and representing signs of rising international demand for luxury hotels and trophy properties.
Anbang Insurance Group Co. supposedly beat out two other bidders, marking the first major U.S. acquisition for the insurance company.
Despite the change of hands, Hilton maintains a 100-year management contract, and plans to use the proceeds of the sale to acquire other properties, which will allow them to escape an enormous tax charge.