On October 6th New York’s legendary Waldorf Astoria hotel – traditionally used by the State Department to house hundreds of U.S. diplomats - was sold to the Beijing – based Anbang Insurance Group for $1.95 billion, sparking security concerns in Washington.
It remains to be seen if the recent sale will affect the government’s longstanding relationship with the Waldorf but in an official statement Monday U.S. officials said they are reviewing all aspects related to the purchase.
Terms of the sale allow Hilton to run the hotel for the next 100 years and call for "a major renovation" that officials say has raised eyebrows in Washington, where fears of Chinese eavesdropping and cyber espionage run high.
"We are currently in the process of reviewing the details of the sale and the company's long-term plans for the facility," said Kurtis Cooper, a spokesman for the U.S. Mission to the United Nations. He and other officials said decisions about the future of the U.S. relationship with the Waldorf would be made based on cost, Anbang's long-term plans for the hotel, and the government's needs and security concerns.
The biggest concerns surrounded the language calling for the ‘major renovation,’ which officials said the specifics would be a major issue in their review.
"The State Department takes seriously the security of its personnel, their work spaces and official residences," Cooper said. "We are constantly evaluating our security protocols and standard operating procedures to ensure the safety and security of our information and personnel."
Beyond housing the U.S. ambassador to the U.N. throughout the year, every September the State Department takes over two floors in the hotel for its headquarters during the U.N. General Assembly, with one of the guests being the President himself.
U.S. law allows the department to rent the ambassador's residence for a term of 10 years or less. The current lease expires next year with an option to renew it for one or two years.
It was not immediately clear if the review would affect decisions about the possible renewal of the existing lease.
