Iconic Waldorf Astoria hotel is part of China's US property fire sale - but don't expect a bargain

"Few could have predicted Chinese buyers' fast entry" a few years ago, said Richard Hightower, a real estate analyst at the New York-based investment bank Evercore ISI. "And few could have predicted their quick exit either." ... while talks are continuing about buying back San Francisco's Westin St. Francis in San Francisco and JW Marriott Essex House in New York -- two hotels Blackstone sold to Anbang through Strategic Hotels & Resorts in 2016 -- Waldorf Astoria is a much harder deal, according to people with knowledge of the matter ... Anbang is also under pressure to restructure and will start looking for private capital. With close to US$10 billion in capital supplied by Chinese authorities, it isn't in as much as a financial bind. At the time of its takeover in February, the government said it would control the business for at least a year, providing leeway to wait for a good offer to show up. That wiggle room also helps Anbang as the US hotel sector, which saw a dip due to hurricanes and political turmoil in 2017, sees an uptick this year, according to a report by the National Association of Realtors. ... waiting for a higher valuation is crucial as most of the Chinese-owned properties were acquired at the peak of the market around 2015. To be sure, "some firms are forced to sell," said Geoffrey Sant, a lawyer at Dorsey & Whitney who represents Chinese clients in cross-border transactions. "For them, losing some money isn't good, but they'd rather get out of the area that's seen as problematic by Beijing." Some private equity firms have already taken advantage of buying smaller and lesser-known assets back from the Chinese. In March, the New York-based real estate investor Northwood Investor bought HNA's 1180 Sixth Avenue office for US$305 million. The price dropped from US$320 million as cash-strapped HNA was in a bind to service its debt.