Hilton Worldwide has announced that it's closed the sale of the Waldorf Astoria New York to the Anbang Insurance Group for $1.95 billion.
According to BreakingTravelNews.com, Hilton Worldwide has already put pen to paper on several agreements that will use the revenue from the Manhattan sale to fund five milestone properties in strategic locations.
The aforementioned properties include the Hilton Orlando Bonnet Creek, Waldorf Astoria Orlando, The Reach, A Waldorf Astoria Resort in Key West, Casa Marina, A Waldorf Astoria Resort in Key West, and San Francisco's Parc 55.
The total combined purchase price of the five hotels is roughly $1.76 billion and all but Parc 55 are currently managed by Hilton Worldwide.
Hilton hopes to finalize the purchases this month and use the leftover funds to invest in additional assets over the next six months of 2015.
"These transactions will enable us to unlock the embedded value of the Waldorf Astoria New York and acquire great institutional quality assets that we expect will drive significant incremental value for the company," said Hilton Worldwide president Christopher Nassetta in a statement.
"Our relationship with Anbang will ensure the Waldorf Astoria New York will continue to be a marquee hotel for the Waldorf brand long into the future, and will enable Hilton Worldwide and Anbang to build on the hotel's rich legacy and traditions," Nassetta added.
Hilton Worldwide will continue to operate the Waldorf Astoria New York as part of its long-term agreement with Anbang.
The next step for the hotel will be undergoing restoration. Anbang is planning a major renovation for the property as it aims to return the 1,400-plus-room hotel to its prime.
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