Donald Trump Nearing Deal to Sell His Washington D.C. Hotel Following Revenue Plunge From Covid-19
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Former President Donald Trump is in advanced talks to sell the Trump International Hotel in Washington, D.C., Axios reported on Saturday.
According to the report, “Trump would sell the leasing rights to a real estate developer, who in turn would negotiate with hotel companies that would manage the property and rebrand it.”
“Trump’s representatives have been in talks with major hotel chains and investors,” Axios reported.
The hotel is located just blocks from the White House in the 122-year-old Old Post Office building, which Trump leases from the General Services Administration for approximately $250,000 per month. The agreement was set in 2013, and the GSA said in 2017 that the monthly base rent would rise with inflation.
The agreement was also condition on at least $200 million being invested into restoring the property.
Trump previously tried to sell the hotel in 2019 to no avail, and a sale now would likely fetch less than the $500 million asking price from 2019, according to Axios.
While Trump Organization officials have not publicly commented about the prospect of a sale, in 2019, Eric Trump said in a statement that they “have received tremendous interest” from prospective buyers.
“Since we opened our doors, we have received tremendous interest in this hotel and as real-estate developers, we are always willing to explore our options,” he said, later adding, “People are objecting to us making so much money on the hotel, and therefore we may be willing to sell.”
The hotel was a magnet for GOP-related events and gatherings during Trump’s presidency, but government watchdogs warned the hotel could have been used to solicit favors from the then-President.
For example, the Washington Post found that a lobbying firm with ties to the Saudi government paid $270,000 to the D.C. Trump hotel between late 2016 to early 2017.
While the D.C. hotel was generally one of Trump’s more profitable locations — in 2018, the Trump International Hotel alone generated $40.8 million in revenue, the Covid-19 pandemic has taken a considerable toll.
“When Trump left office, The Washington Post reported that the D.C. hotel had a $170 million loan outstanding, and had seen revenue drop more than 60 percent compared to the previous year,” the Axios report read.
