An iconic Manhattan hotel is rumored to be for sale, and once the Waldorf Astoria New York hits the market, all eyes will be on it to see who steps up to buy.
The recently renovated hotel reopened to the public last year after a multibillion-dollar transformation that included converting the existing 1,400 hotel rooms into 375 guest rooms and 372 luxury residential condos. On Wednesday, the Wall Street Journal reported that the hotel will soon be up for sale. The owner is reportedly working with investment bank Eastdil Secured to market the hotel.
Anbang Insurance Group — at the time a Chinese company seeking foreign real estate investment opportunities — bought the Waldorf Astoria New York in February 2015 for $1.95 billion. It then closed the hotel in 2016 for renovations that were planned to take approximately five years.
In 2018, the Chinese government took control of Anbang, and the company's ex-chairman, Wu Xiaohui, was found guilty of fundraising fraud and embezzlement. In 2020, Reuters reported that the company was disbanded and liquidated, with ownership of its assets transferred to the government-controlled Dajia Insurance Group, its current owner through subsidiary Strategic Hotels & Resorts.
According to the WSJ's reporting, the sale would include the 375 guest rooms, as well as the Waldorf Astoria New York's food-and-beverage concepts, shops and spa, which were all also included in the recent overhaul. The luxury condos, however, will be sold separately.
The potential sale comes at an interesting time as luxury and ultra-luxury hotels continue to perform well in the K-shaped economy, said Jan Freitag, national director of hospitality analytics for CoStar.
"I think what the post-COVID era has shown is that the K-shaped economy has produced a lot of households with a lot of high net worth that are very interested in spending on experiences," he said.
According to CoStar data, the New York market continues to perform well, especially when it comes to luxury hotels. Average daily rate for luxury hotels in New York is up 8.8% to $580.33 over the 12 months ending Dec. 31, 2025. Revenue and revenue per available room is also up 12.1% and 9.4%, respectively, for the same period.
Freitag explained that he doesn't think the Chinese government is going to target getting its return on investment for the recent renovation, but there is a small pool of entities that are going to be able to and be interested in purchasing the Waldorf Astoria New York.
He said it's likely not going to be a hotel real estate investment trust and, aside from a high-net-worth individual making an ego purchase, it will likely be another foreign investor. Some of the bigger funds that could write that check aren't likely to be tempted away from other real estate purchases like an artificial data center considering recent returns on investment in the hotel industry,
"This is such a unique trophy property and sort of once-in-a-lifetime acquisition," Freitag said.