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Waldorf Astoria's $2B Condo Conversion Is Over Budget, Behind Schedule As Top Exec Departs

The Waldorf Astoria hotel on Park Avenue in Manhattan

The revamp of the iconic Waldorf Astoria is both behind schedule and well over budget, leading to the exit of one of the executives overseeing the redevelopment.

Chinese insurance giant Anbang paid Hilton $1.95B for the hotel at 301 Park Ave. in 2015, setting a record for a single-asset hotel purchase, then embarked on a major conversion of the storied building.

The redevelopment is set to turn the property into a smaller hotel of 375 guest rooms along with 375 luxury condominiums, and it was set to be complete by 2021 and cost more than $1B. Now, work is not expected to be complete before the end of next year and could drag into 2024, while the price tag has ballooned to over $2B, The Wall Street Journal reports.

Former Anbang Chairman Wu Xiaohui was charged with corruption and sentenced to 18 years in prison in 2018, and the Chinese government took over the firm. The following year, Dajia Insurance Group Co., a company the Chinese government created, took over the Waldorf’s conversion, with Andrew Miller leading the U.S.-based subsidiary as CEO.

But Miller left Dajia last week, the WSJ reported, citing unnamed sources who attributed it to his being in conflict with the company regarding the budget and delays.

Known as The Towers of the Waldorf Astoria, condo sales launched in early March 2020. A four-bedroom is asking $19M, per StreetEasy, with a studio priced at $1.8M. Representatives for the Waldorf said there have been “numerous” contracts signed on properties during the month of April.