Trump company in late-stage talks to sell DC hotel: report
Former President Trump’s company is reportedly in late-stage discussions to sell the rights to the Trump International Hotel in Washington, D.C.
Sources familiar with the matter told The Wall Street Journal that Miami-based investment firm CGI Merchant Group is in talks to acquire the lease to the hotel. According to these sources, CGI is also in discussions with major hotel groups like Hilton Worldwide Holdings Inc. to remove Trump’s name from the hotel.
As the Journal noted, the federal government owns the property, the former Old Post Office. Trump won the lease for the property in 2013, agreeing to pay a reported base rent of $250,000 a month. The then-real estate mogul reportedly spent hundreds of millions of dollars to renovate the property into a luxury hotel.
One person familiar with the matter told the Journal that the lease deal could now fetch a price close to $400 million, nearly double what the Trump Organization spent in revamping the property. Trump looked into selling the hotel’s lease about two years ago, according to the Journal, with apparent hopes that it could sell for close to half a billion dollars.
The House Oversight and Reform Committee has been investigating the hotel and Trump for possible conflicts of interest while he was in office.
Last week, the committee unveiled documents showing that the hotel lost more than $71 million from 2017 to 2020. Committee Chairwoman Carolyn Maloney (D-N.Y.) and Government Operations Subcommittee Chairman Gerry Connolly (D-Va.) said the documents showed Trump misled the General Services Administration by claiming to make huge profits on a business that was severely in the red.
The documents also revealed that Trump’s company received $3.7 million from foreign governments during his presidency.
The Hill has reached out to the Trump Organization for comment.