Simpson Thacher & Bartlett and Skadden have taken lead roles on the sale of New York's most iconic hotel, the Waldorf Astoria, to Chinese outfit Anbang Insurance Group, for a record $1.95bn (£1.22bn).

The deal is understood to be the largest ever US real estate purchase by a Chinese company and the most expensive American hotel ever bought.

Hilton Worldwide, the current owner of the property, has agreed with Anbang that Hilton will continue to operate the property for the next 100 years, during which time it will undergo a major renovation.

The hotel group will meanwhile use the proceeds to acquire additional hotel properties and assets in the US, via one or more transactions.

Simpson Thacher is representing Hilton on the deal, fielding a team of 11 lawyers in New York to provide counsel on M&A, real estate, tax, capital markets and employee benefits.

Leading the group is the firm's head of real estate Greg Ressa, with support from three other partners: John Hart – global head of tax, securities partner Edgar Lewandowski and employee benefits partner Greg Grogan.

Skadden acted for Anbang, with a 16-lawyer team including New York real estate partners Audrey Sokoloff and Harvey Uris, alongside tax partner Victor Hollender, IP partner Bruce Goldner and corporate restructuring partner Mark McDermottas.

Also involved was financial regulatory partner Jamie Boucher and M&A partner Ivan Schlager – both in Washington DC, and corporate partners Peter Huang in Beijing and Gregory Miao in Shanghai.

Fried Frank and Greenberg Traurig are advised the Chinese insurer on landmarks, zoning and hospitality.

The Waldorf Astoria – famously called "the greatest of the them all" by Hilton founder Conrad Hilton – is a New York City landmark which opened in 1931.

It was the setting for the film "Weekend at the Waldorf", and home to the Waldorf salad – which famously featured in an episode of British comedy Fawlty Towers.

Its purchase by Anbang reflects an growing interest among Chinese insurance companies to purchase foreign real estate assets.

In June, reports emerged that state-owned China Life was in talks to buy Clifford Chance's headquarters in Canary Wharf – a 30-storey building located at 10 Upper Bank Street – for £780m.