Hilton Worldwide Closes Sale of the Waldorf Astoria New York and Reaches Agreements to Redeploy Proceeds to Acquire Five Landmark Hotels (United States)
Purchase Agreements Signed for Hilton Orlando Bonnet Creek, Waldorf Astoria Orlando, The Reach and Casa Marina Waldorf Astoria Resorts in Key West and Parc 55 in San Francisco |
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Hilton Worldwide Closes Sale of the Waldorf Astoria New York and Reaches Agreements to Redeploy Proceeds to Acquire Five Landmark Hotels (United States)
Purchase Agreements Signed for Hilton Orlando Bonnet Creek, Waldorf Astoria Orlando, The Reach and Casa Marina Waldorf Astoria Resorts in Key West and Parc 55 in San Francisco |
Category: North America & West Indies / Carribean islands - United States - Industry economy -
Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2015-02-12
Hilton Worldwide Holdings Inc. ("Hilton Worldwide") today announced it closed its previously-announced sale of the Waldorf Astoria New York to Anbang Insurance Group Co. Ltd. ("Anbang") for $1.95 billion. In addition, Hilton Worldwide has signed agreements to redeploy the proceeds of the sale to add five landmark properties in strategic resort and urban locations to its owned portfolio:
Hilton Orlando Bonnet Creek in Orlando, FL (1,001 rooms)
Waldorf Astoria Orlando in Orlando, FL (498 rooms)
The Reach, A Waldorf Astoria Resort in Key West, FL (150 rooms)
Casa Marina, A Waldorf Astoria Resort in Key West, FL (311 rooms)
Parc 55 in San Francisco, CA (1,024 rooms)
The Parc 55, which represents over one third of the purchased portfolio by number of rooms, will be a new addition to the Hilton Hotels & Resorts brand that will be managed by Hilton Worldwide. The other acquired hotels are currently managed by Hilton Worldwide.
As part of its long-term relationship with Anbang, Hilton Worldwide will continue to operate the Waldorf Astoria New York under a 100-year management agreement. Anbang also plans to complete a major renovation to restore the property to its historic grandeur.
"These transactions will enable us to unlock the embedded value of the Waldorf Astoria New York and acquire great institutional quality assets that we expect will drive significant incremental value for the company," said Christopher J. Nassetta, president and CEO, Hilton Worldwide. "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."
The five U.S. hotels to be acquired with the proceeds from the sale of the Waldorf Astoria New York are expected to be part of a like-kind exchange under Internal Revenue Code Section 1031. The total purchase price of these five hotels of $1.76 billion represents approximately 13x the midpoint of the five properties' combined full-year forecasted 2015 Adjusted EBITDA of between $132 million to $138 million. Hilton Worldwide expects that these hotels will not require meaningful incremental capital expense in the near term, and will expand the footprint of Hilton Worldwide's portfolio of iconic owned hotels in Florida resort markets and San Francisco, a key growth market. Hilton Worldwide expects to close on the purchase of these five hotels in February of 2015, and use the balance of the proceeds of the sale of the Waldorf Astoria New York net of prorations, adjustments and transaction expenses, estimated to be approximately $100 million, to purchase additional assets within the next six months.
Eastdil Secured advised Hilton Worldwide on the sale of the Waldorf Astoria New York and the hotel acquisitions.
About Anbang Insurance Group Co. Ltd. Anbang Insurance Group Co. Ltd. is a leading insurance company based in Beijing, China with more than 30,000 employees and more than 700 billion yuan in assets. It provides a comprehensive range of financial and insurance services and products to more than 20 million customers, including life insurance, pensions, health insurance, property and casualty insurance and asset management. Since its founding in 2004, Anbang has delivered excellent results to its clients and the most advanced technology to enhance the customer experience. As a Chinese insurance company with an international vision, Anbang has established a strategy to offer complete, globalized services to its clients and to realize stable, long-term returns through investments in asset allocation around the world. Visit www.anbanggroup.com/abic/english for more information.
About Hilton Worldwide Hilton Worldwide (NYSE: HLT) is a leading global hospitality company, spanning the lodging sector from luxury and full-service hotels and resorts to extended-stay suites and focused-service hotels. For 95 years, Hilton Worldwide has been dedicated to continuing its tradition of providing exceptional guest experiences. The company's portfolio of twelve world-class global brands is comprised of more than 4,300 managed, franchised, owned and leased hotels and timeshare properties, with more than 715,000 rooms in 94 countries and territories, including Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio - A Collection by Hilton, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton Hotels, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations. The company also manages an award-winning customer loyalty program, Hilton HHonors.
About Waldorf Astoria Hotels & Resorts Waldorf Astoria Hotels & Resorts is a portfolio of 26 landmark destinations, each being a true reflection of their surroundings in the world's most sought after locations. Unified by their inspirational environments and unparalleled guest service, Waldorf Astoria creates unique authentic moments through the delivery of True Waldorf Service.
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