China's Anbang Insurance Group is buying the world famous Waldorf Astoria in New York from Hilton Worldwide Holdings for $1.95 billion.

As part of the deal, Anbang will grant Hilton Worldwide a management agreement to continue to operate the property for the next 100 years, and the hotel will undergo a major renovation, Hilton said in a statement.

Hilton Worldwide intends to use the proceeds from the sale to acquire additional hotel assets in the US. the deal is expected to be completed by 31 December.

The Art Deco Waldorf Astoria in New York is the flagship hotel of Hilton Worldwide's luxury brand, Waldorf Astoria Hotels and Resorts and was famously called "The Greatest of the Them All" by Hilton Worldwide's founder Conrad Hilton.

Since 2007, the brand has increased its footprint more than five times to a portfolio of 27 landmark destinations, including Amsterdam, Beijing, Chicago, Dubai, Jerusalem, Ras Al Khaimah and Shanghai. Its pipeline of nine additional hotels includes key destinations such as Bali, Bangkok and Beverly Hills.

"We are very excited to be entering into this long-term relationship with Anbang, which will ensure that the Waldorf Astoria New York represents the brand's world-class standards for generations to come. 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 Christopher Nassetta, president and chief executive officer, Hilton Worldwide.