Hilton Worldwide Holdings Inc. is selling its flagship hotel, the historic Waldorf Astoria in Manhattan, for $1.95 billion, illustrating the heated competition—particularly among foreigners—for famous luxury properties that only a few years ago struggled to fill their rooms.

The Waldorf sale, to Anbang Insurance Group Co. of China, carries the steepest price tag ever for a U.S. hotel, brokers say, although it isn’t the highest on a per-room basis.

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