Hilton Worldwide Holdings Inc (NYSE:HLT) announced that it has entered an agreement with the Chinese insurer, Anbang Insurance Group Co. to sell its landmark Waldorf Astoria Hotel in Manhattan for $1.95 billion.

Anbang Insurance Group Co. agreed to give 100 years management agreement to operate the hotel to the Hilton group under which, the hotel would undergo major renovation to restore its artistic grandeur.

Christopher J. Nassetta, president and CEO of Hilton Worldwide Holdings Inc (NYSE:HLT), said,

“We are very excited to be entering into this long-term relationship with Anbang, which will ensure that the Waldorf Astoria New York represents the brand’s world-class standards for generations to come. This relationship represents a unique opportunity for our organizations to work together to finally maximize the full value of this iconic asset on a full city block in midtown Manhattan.”

The hotel chain would use the proceedings of this deal to purchase more properties within U.S. and boost its luxury-properties brand value in the country. According to Lodging Econometrics, this is the largest ever transaction for any U.S. hotel until now and would boost Chinese investments in the NYC real estate. Bruce Ford, Senior VP and global business development director of Lodging Econometrics said, “There really are no other sales to compare it to. It is the most unique asset with the most unique location in the world.”

CEO of Hilton Worldwide said in February that the company plans to sell the hotel and it raised $2.35 billion making it a record initial public offering in the hotel industry last year. Some experts are even assuming that Hilton Worldwide Holdings Inc (NYSE:HLT) decided to sell the hotel to save itself from the renovation costs. The company would save money in taxes with the purchase of other U.S. properties within 180 days of the closing of this deal.

This article has been written by Prakash Pandey and edited by Serkan Unal.

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