Landmark New York hotel Waldorf Asotria will undergo an extensive overhaul over the next three years, according to plans of its Chinese acquirer Anbang Insurance Group Co.
The restoration plan will involve shutting down the Park Avenue hotel and converting almost 75% of its rooms into private apartments.
From 1,100 hotel rooms, the new hotel will feature between 300 to 500 rooms. The rest of the rooms will be sold as condominium units. The refurbishment plan is expected to cut hundreds of hotel jobs.
The job cuts are seen to primarily affect the 1,500 housekeeping and other hospitality jobs in Waldorf. Anbang and Hilton Worldwide Holdings Inc. have reached severance agreements with the displaced employees to the tune of $100 million or more, sources said.
Renovation bills are expected to run up to more than $1 billion, with almost $2 billion already spent for the acquisition of the property.
Waldorf Astoria is a historical landmark, having played host to top politicians, entertainers, and royalty during its heyday.
