The historic Waldorf Astoria hotel in New York City will soon have a new look. According to reports, Anbang Insurance Group Co., the company that purchased the property last year, is finalising plans for an extensive overhaul that would see nearly 75 percent of the rooms renovated into residences.
The ambitious restoration plan will close down the hotel for three years. During that time more than 1,000 hotel rooms would be eliminated. Once the property is reopened, the hotel would boast 300 to 500 upgraded guest rooms with all remaining units being sold as condominiums, sources told the Wall Street Journal.
Hilton is expected to manage the property when it reopens, however, plans for the entire project have yet to be finalised. Anbang hopes to sit down with those in charge of the Waldorf to put the finishing touches on the renovation plan.
The hotel has been in business for 85 years and is seen as an American institution having played host to countless politicians and celebrities throughout its history. Frank Sinatra, the Duke of Windsor and numerous US presidents have all stayed at the property, which is located on New York’s famed Park Avenue.
Converting historic New York hotels into condominiums is nothing new with developers preferring high-end residential sales to the constant stream of income hotel rooms provide. The WSJ noted that Morgan Stanley hotel analyst Thomas Allen predicted that a conversion of the Waldorf could raise as much as USD4 billion in condo sales.
However, Manhattan’s high-end condo market has struggled during the past 12 months with prices decreasing and listings taking longer to be sold. Luxury broker Olshan Realty Inc. explained to the newspaper that the number of contracts signed for units priced at USD4 million or more during the first half of 2016 dropped 22 percent y-o-y.
