Anbang to close Waldorf Astoria for three years during $1B condo conversion

1,100 hotel rooms slated to become luxury apartments

New York /
Jun.June 27, 2016 08:05 AM

Anbang Insurance Group plans to shut down the Waldorf Astoria hotel for up to three years while it converts the majority of the rooms into condominiums. 

The Chinese insurer, which bought the hotel for $1.95 billion from the Blackstone Group last year, will turn 1,100 rooms into condos. Hilton Worldwide, which currently operates the Waldorf Astoria, will manage the remaining 300 to 500 rooms as a smaller luxury hotel. The conversion will cost up to $1 billion.

The reduction in the hotel’s size will leave hundreds of hospitality jobs by the wayside. Anbang and Hilton already signed severance deals with those workers at a total cost of $100 million, sources told the Wall Street Journal.

The Real Deal first reported Anbang’s condo conversion plans last year.

“To achieve the high value-creation, we plan to renovate the two towers into luxury residential apartments with world-class amenities and finishes,” the firm’s chairman Wu Xiaohui said in a speech at Harvard last year. “At the same time, we will build the hotel section into a super five-star hotel, delivering unparalleled customer experience.”

Chinese insurance regulators are currently scrutinizing Anbang for its strategy of offering short-term policies to consumers and then tying that money up in long-term investments, potentially causing an asset-liability mismatch. [WSJ]Konrad Putzier 


Related Articles

arrow_forward_ios
PMG principals Kevin Maloney (middle), Ryan Shear (left) and Dan Kaplan with a rendering of Waldorf Astoria Miami (PMG, Muse Residences, Rendering via ArX Solutions)
Waldorf Astoria Miami, planned as the tallest resi tower south of Manhattan, launches sales
Waldorf Astoria Miami, planned as the tallest resi tower south of Manhattan, launches sales
Ken TaeHern Kim and Zhongyuan Li with Fairmont San Francisco (Linkedin, Google Maps)
Mirae Asset wins lawsuit over scrapped $5.8B Anbang hotel deal
Mirae Asset wins lawsuit over scrapped $5.8B Anbang hotel deal
Ken TaeHern Kim, Zhongyuan Li and the Hyatt Regency Waikiki Beach (Linkedin, Google Maps)
Allegations fly in trial over Anbang and Mirae’s $5.8B hotel deal
Allegations fly in trial over Anbang and Mirae’s $5.8B hotel deal
Anbang’s Andrew Miller, Mirae’s Peter Lee and (from left) JW Marriott Essex House, the Westin St. Francis in San Francisco and the Four Seasons in Jackson Hole (Credit: Marriott, Westin, Four Seasons)
Buyer’s remorse?: How Anbang’s $5.8B hotel deal went sideways
Buyer’s remorse?: How Anbang’s $5.8B hotel deal went sideways
Clockwise from the top left: JW Marriott Essex House in New York, the Four Seasons in Jackson Hole and the Westin St. Francis in San Francisco with Daija CEO Andrew Miller (Credit: MusikAnimal via Wikipedia; Jackson Hole Real Estate; Booking)
Anbang’s $5.8B hotel portfolio sale scrapped
Anbang’s $5.8B hotel portfolio sale scrapped
Photo illustration of the statue at the entrance of the Waldorf Astoria
The Waldorf Astoria’s big gamble
The Waldorf Astoria’s big gamble
Douglas Elliman Development Marketing closed all its on-site sales offices and galleries until the end of March for health and safety concerns (Credit: iStock; Douglas Elliman)
Elliman shutters on-site sales offices nationwide, citing coronavirus concerns
Elliman shutters on-site sales offices nationwide, citing coronavirus concerns
CEO Andrew Miller and clockwise from top left: JW Marriott Essex House in New York, the Westin St. Francis in San Francisco and the Four Seasons in Jackson Hole
Coronavirus threat could help sink Anbang’s $5.8B hotels deal: report
Coronavirus threat could help sink Anbang’s $5.8B hotels deal: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...