Classic Waldorf Hotel to Be Gutted, Up to 1,100 Rooms Turned Into Condos

Waldorf_Astoria_Hotel

China’s Anbang, acquirer of the New York landmark, is finalizing plans to shut the hotel for up to three years and convert as many as three-quarters of its rooms into private apartments

The Chinese acquirer of the Waldorf Astoria is finalizing plans for an extensive overhaul that would shut the landmark New York hotel for up to three years and convert as many as three-quarters of its rooms into private apartments, people familiar with the matter said.

Anbang Insurance Group Co.’s restoration plan calls for closing down the 1,413-room property in the spring, removing as many as 1,100 hotel rooms and eliminating hundreds of hotel jobs, the people said.

When the Waldorf reopens, the hotel will feature between 300 and 500 guest rooms upgraded to luxury standards, the people said. The remaining units will be sold as condominiums.

The vast reduction in Waldorf hotel rooms will lead to the elimination of many room-service, housekeeping and other hospitality jobs. The Waldorf has about 1,500 hotel employees. The new owners and Hilton Worldwide Holdings Inc., which will continue to manage the property when it reopens, have reached severance agreements with hundreds of these workers at a cost of $100 million or more, some of the people familiar with the matter said.

The insurer plans to meet with Waldorf representatives during the next couple of weeks to finalize its proposal for the property, some of the people said. “We continue to explore all options,” an Anbang spokesman said. “We have no definitive plans at this time.”

The redevelopment costs are expected to run to more than $1 billion, said people familiar with the plan. Anbang already spent $1.95 billion to acquire the property last year, the steepest price tag ever for a U.S. hotel.

The changes will radically transform an 85-year-old institution that has played a storied role in American political and cultural life. Occupying a full city block on Park Avenue, the Waldorf gained world-wide attention for its luxury suites, lavish parties and famous guests. Every president since Herbert Hoover has stayed there, and it has been a New York home to celebrities such as Gen. Douglas MacArthur, Frank Sinatra, and the Duke of Windsor after he abdicated his throne to marry American socialite Wallis Simpson.

Hotelier Conrad Hilton, who acquired control of the property in 1949, once scribbled on a photo of the hotel that it was “The Greatest Of Them All.”

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