McLEAN, VA—Hilton Worldwide Holdings is using the proceeds from its landmark sale of the Waldorf Astoria New York last year to buy five hotels in Florida and California in a 1031 exchange for $1.76 billion.

The properties include the 1,001-key Hilton Orlando Bonnet Creek in Orlando, FL; the 498-room Waldorf Astoria Orlando in Orlando, FL; The Reach, a Waldorf Astoria Resort in Key West, FL that has 150 rooms; the Casa Marina, a 311-key Waldorf Astoria Resort in Key West, FL; and the Parc 55 in San Francisco, CA, which as 1,024 rooms.

The $1.76 billion purchase price of these five hotels is 13 times the midpoint of the five properties' combined full-year forecasted 2015 Adjusted EBITDA of between $132 million to $138 million, the company said. It doesn't expect to have to make significant capital expenditures on the property in the near term.

It plans to close on the purchase this month.

That leaves some $100 million in proceeds from the Waldorf Astoria New York sale, which will be used to make additional acquisitions over the next six months.

This transaction introduces some new blood into Hilton's portfolio, namely the Parc 55. It also gives the hotel company more exposure to San Francisco's high-growth market—where a presence has almost become de rigueur for hotel companies.

As for the Waldorf Astoria New York, which traded for $1.95 billion, Hilton will continue to operate the iconic establishment under a 100-year management agreement.

"These transactions will enable us to unlock the embedded value of the Waldorf Astoria New York and acquire great institutional quality assets that we expect will drive significant incremental value for the company," says Christopher J. Nassetta, president and CEO, Hilton Worldwide.

Eastdil Secured advised Hilton Worldwide on the hotel acquisitions.