Beijing-based Anbang Insurance Group Co. Ltd. announced to buy the iconic Waldorf Astoria New York for about US$1.95 billion.

Hilton Worldwide on Monday said it will sell the iconic Waldorf Astoria New York to Beijing-based Anbang Insurance Group Co. Ltd. for about US$1.95 billion. Anbang will undertake an extensive renovation of the hotel and give Hilton a 100-year management contract.

Hilton said it plans to use the proceeds of the sale to acquire additional U.S. hotels. The acquisitions will be finalized and announced at a later date, the company said.

The Park Avenue entrance to the Waldorf Astoria New York

"This relationship represents a unique opportunity for our organizations to work together to finally maximize the full value of this iconic asset on a full city block in midtown Manhattan," said Chris Nassetta, president and chief executive officer of Hilton Worldwide.

Since 2007, Hilton has grown the Waldorf Astoria Hotels & Resorts brand more than five times to 27 hotels. In March 1893, millionaire William Waldorf Astor opened the 13-story Waldorf Hotel.

The Astoria Hotel opened four years later with The Waldorf Astoria New York opening in 1931 as the largest hotel in the world. The hotel became an official New York City landmark in 1993.