Pressured Dajia Insurance Group likely won’t recoup the
total investment, but a $1 billion price tag is expected.
NEW YORK CITY – The Chinese state-run Dajia Insurance Group is
preparing to sell the Waldorf Astoria New York after sinking nearly $4 billion
into the property, including Anbang Insurance Group’s $1.95 billion purchase in
2014 and a reported $2 billion lengthy eight-year and overbudget renovation.
The Wall Street Journal broke the story on Wednesday, citing
a broader trend of Chinese firms divesting from major U.S. real estate assets
due to policy pressures from Beijing to streamline overseas holdings. Others
have suggested the sale is a result of balance‑sheet realities at Dajia
Insurance Group and market timing. Investment bank Eastdil Secured is
expected to market the property for what is expected to be in excess of $1
billion.
Waldorf’s adjoining restaurants, shops and other amenities
would be included in a sale, but the condos would continue to be sold
separately, the Journal reported, citing people with knowledge of the plans.
The venerable Waldorf, which closed with some 1,400 rooms,
today has 375 hotel rooms and 372 private residences with Hilton holding a
100-year management contract.
The Waldorf has re-opened to great fanfare over the last few
months with Hilton using the tagline “The Greatest of Them All.”
When Waldorf Astoria New York opened its doors in 1931, the
hotel set a record as the highest and largest hotel in the world, emerging as
an Art Deco icon and a symbol of New York culture. The hotel encompasses 62,000
square feet of landmark-protected spaces that required special care during the
restoration, which has been led by Skidmore, Owings & Merrill.