Waldorf-Astoria, sold to Chinese, longtime host to Chinese dignitaries
New York’s Waldorf-Astoria hotel holds a special place for many Chinese visitors — starting at the very top.
The diminutive Chairman Deng Xiaoping stayed at the hotel during his first trip to the United States in 1974, where then-Secretary of State Henry Kissinger threw a banquet in his honor.
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FOR THE RECORD
An earlier version of this post said Anbang Insurance Group was founded in 2012 and that it had $700 billion in combined assets. It was founded a decade ago and has more than 700 billion renminbi, or $114 billion, in assets.
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Deng’s handpicked successors Jiang Zemin and Hu Jintao followed his example, as have luminaries including Alibaba Group Chairman Jack Ma, who used the glamorous venue to launch his recent IPO roadshow, attracting hundreds of investors.
The hotel has been sold to the Chinese, but the purchaser behind this week’s $1.95-billion deal is surprisingly an insurance company little known outside China.
Chinese Anbang Insurance Group, founded a decade ago, has more than 700 billion renminbi, or $114 billion, in combined assets, ranking eighth among all domestic insurers.
Anbang also boasts an extremely well-connected board, with many family members of notable government officials.
A 2013 statement from the China Insurance Regulatory Commission lists Chen Xiaolu, the son of revolutionary general Chen Yi, on the board, as well as Wu Xiaohui as chairman.
Wu is rumored to have been married to the granddaughter of Deng.
Wu is known for his merciless business style in Beijing, as well as his strong level of political support. The company’s rise is credited to his “charisma and business acumen — and his apparent success at pushing regulatory limits,” said Chinese financial magazine Caixin.
The 83-year-old, 1,232 room Art Deco building will continue to be managed by the Hilton group. Hilton will renovate the property in the upcoming months, the company said.
Purchase of real estate, such as the extremely high-profile hotel, is an attempt to diversify portfolios in shaky times, Kevin Mallory, head of the hotels unit of commercial real estate brokerage CBRE Group Inc., told the Washington Post. “We’ve seen a lot of wealth generated there over the last decade, and we see see private investors diversifying their portfolio around the globe.”
Other Chinese buyers have also recently expanded into New York’s real estate market. Last year, real estate firm SOHO China bought 40% of Manhattan’s General Motors building for $1.4 billion, which was the largest purchase in the United States before the Waldorf deal.
Chinese Conglomerate Fosun International bought the towering Chase Manhattan Plaza tower for $725 million. Chinese buyers are now the top foreign investors in Manhattan real estate, reported Reuters in April.
Silbert is a special correspondent.
