Chinese Owners of Waldorf Astoria Put Iconic Hotel on The Market

The iconic Waldorf Astoria is about to hit the for sale market, only a year after the Chinese owners completed a massive eight year $2 billion renovation that had shuttered the historic property for eight years.

The Dajia Insurance Group, a company controlled by the Chinese government, will be selling the building as soon as next month, according to a report in The Wall Street Journal. The Waldorf’s restaurants, shops, and other amenities will be included in a sale, with the condos being sold separately. The company will be putting the hotel on the market through the real-estate investment bank Eastdil Secured.

Anbang Insurance Group bought the hotel in 2014 for $1.95 billion, making it one of the most expensive hotel sales in history. The property was then closed in 2017 for renovations, which led to its sale to the Dejia Insurance Group a year later.

When Anbang Insurance Group Chief Executive Wu Xiaohui bought the Waldorf Astoria hotel in 2014, there was an expectation that the property value would increase over the years, making the buy a smart long term investment. However, when Wu was arrested by Chinese authorities on charges of fraudulent fundraising and abusing his power, the Chinese government took ownership of the company. This is when the Dajia Insurance Group stepped in to handle the Waldorf.

The hotel currently has 375 guest rooms, which originally was 1,400 pre-renovation, with the addition of 372 private condo residences. The renovation ended up being 25 percent higher in cost than the initial expectations, putting them $1 billion over budget. There were major delays in the renovations due to landmark preservation guidelines, pandemic-related supply chain concerns, and the challenges of reconstructing a nearly century-old structure.

The Hilton hotel chain, which has been managing the property on behalf of the Dajia ownership, has yet to disclose any information on the financial data of the property, the hotel is expected to sell with a price tag of around $1 billion, according to the WSJ.

The luxury hotel market is at an all-time high, with data from the firm CoStar showing that “New York City’s luxury lodging sector had average daily rates of more than $580 last year and revenue per available room of more than $450,” as reported by the WSJ.

Considering the growing political tensions between China and the U.S., there have been many Chinese companies pulling out of the market. The Chinese government has even been marketing a dozen more luxury hotels in the U.S. to become part of the Strategic Hotels & Resorts portfolio.