It's been more than a year since China's Anbang Insurance Group completed the $1.95 billion purchase of New York's Waldorf Astoria hotel and now the new owners are in the process of finalizing a dramatic overhaul, the Wall Street Journal reported.
Citing sources close to the situation, the Journal reported that the restoration plan calls for the five-star hotel to be shut down for up to three years, with more than 1,000 rooms being converted into private apartments.
Expected to begin next spring, the project could see as many as 1,100 hotel rooms eliminated.
The cost is expected to exceed $1 billion.
Upon completion, the hotel would boast anywhere from 300 to 500 luxury guestrooms, a significant dropoff from its current count of 1,413.
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While the proposal is expected to be finalized in the near future, according to sources, Anbang hasn't revealed any details. "We continue to explore all options," a spokesman told the Journal.
"We have no definitive plans at this time."
Hilton Worldwide, which sold the property to Anbang last year, will continue to manage the Waldorf Astoria when it reopens.
"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," Hilton Worldwide president Christopher Nassetta in a statement last year.
Although the rumored project would be costly, potential changes would also result in savings stemming from a reduced staff. The Waldorf Astoria currently employs as many as 1,500 workers, but the Journal reported Hilton has already reached severance agreements with hundreds of employees.
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