Hilton Mulling over selling New York’s Waldorf Astoria Hotel

The Waldorf Astoria New York

Hilton Worldwide Holdings will make a decision in the coming days whether to sell a stake in the Waldorf Astoria hotel, in New York with the possibility of disposing of the entire property. According to the company’s CEO Christopher Nassetta, the company has not decided when this will be done and who will be the buyer. The CEO confirmed that part of this process would require capital.

Hilton Worldwide Holdings

Nasseta said Hilton is deciding whether to use the Park Avenue property for office, residential or retail purposes. But it may also include other uses as Hilton will continue to run the hotel after any sale. Some analysts say Hilton is considering the sale of the property because the 1,232-roomed hotel is so large that it is no longer economical to operate, and Hilton has been hindered from charging Luxury-level rates.

Following the announcement, speculations have been rife with many predicting the sale is likely to take place in a couple of years, despite the fact that Hilton has clearly stated there will be no timelines. “We don’t have a timeline,” said Nasseta.

Hilton bought Waldorf Astoria in 1972 and would prefer to engage in portfolio selling rather than single property deals.

Last December, USA Today reported that Hilton raised $2.35 in its IPO whose share value has since risen by 12%. Its final quarter revenue rose to $2.64 billion (representing a rise of 13% from the previous year). That was the company’s first earnings report after the public offering in December. However, net income fell to $26 million from the $61 million recorded the previous year.

About $306 million was incurred as expenses and pre-tax general during the process of converting the company into a public limited company. For the year, Hilton’s net earnings rose to $415 million from last year’s $352 million.

Victoria Granden

I enjoy blogging about real estate tips and tricks in my free time.