According to The Associated Press and The New York Times,
the decision to relocate the American high-level delegation is
primarily due to security concerns. The reports cited well-placed
sources in the US government as stating that the relocation was prompted
by the sale last year of the Waldorf Astoria to the Chinese firm Anbang
Insurance Group. The McLean, VA-headquartered Hilton Worldwide
Holdings, Inc., which sold the hotel to the Chinese firm, pocketed
nearly $2 billion from the transaction. Based on the terms of the
agreement, the American company will continue to operate the Waldorf
Astoria until 2114. But Anbang announced last spring that the hotel
would be undergoing a massive renovation program, which, according
to media reports, has alarmed American counterintelligence officials.
The latter are concerned that Chinese intelligence technicians may use
the renovation to install eavesdropping equipment in Waldorf Astoria’s
rooms and compromise the hotel’s Internet network.
The US diplomatic exit from the Waldorf Astoria was first reported
back in mid-June, but was not confirmed by the White House or the
Department of State. Since that time, no American cabinet official,
including Secretary of State John Kerry and Vice President Joe Biden,
has stayed at the Waldorf. But President Obama’s upcoming trip renewed
the media’s interest in the change of hotels, and US government
officials finally confirmed that the Chinese-owned hotel had been
dropped based “on several considerations, including space, costs and
security”. A State Department official told reporters last week that the
change took “into account changing circumstances”. The Times
also reported that the US government is examining whether its ambassador
to the UN will continue to be headquartered at the Waldorf.
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