Trump to sell marquee hotel for at least $375 million
Donald Trump’s family business has an agreement to sell its marquee Washington hotel, reaching a deal to fetch at least $375 million for a property that prompted ethical scrutiny and struggled to make money even as it drew steady crowds of lobbyists, lawmakers and Trump loyalists.
The deal so far is what is known as a purchase and sale agreement, meaning a final sale of the Trump International Hotel has not taken place and may not happen until early next year, according to three people with knowledge of the matter.
The sale of the lease of the hotel, which operates out of a landmark federal building on Pennsylvania Avenue, comes after years of financial losses at the property, which opened in 2016 shortly before Trump was elected president.
Still, with the significant price of the planned sale, the Trump family is expected to turn a profit on the overall investment.
The buyer of the lease is CGI Merchant Group, a minorityowned real estate investment firm in Miami, according to the people briefed on details of the pending transaction, which was first reported by the Wall Street Journal.
CGI is exploring a deal to rename the hotel, based in the Old Post Office building, under the Waldorf Astoria luxury brand.
The sale must be approved by the General Services Administration, the federal agency that controls the property.
From the time of its opening, the hotel immediately drew crowds of Trump supporters and favor-seekers. For a businessman president, it was the ideal bridge between his two worlds: a Trump hotel five blocks from the Trump White House.
This blurring between Trump’s business and his presidency fueled attacks from congressional Democrats who charged that he used the property as the hub of an influencepeddling operation.
Trump’s critics filed lawsuits against him, arguing that business that the hotel received from foreign governments violated the emoluments clause of the Constitution, which prohibits federal officials from taking gifts or payments from other governments.
Trump’s company said that it voluntarily did not solicit business from foreign embassies, given the potential accusations of influence peddling. Trump also donated profits received from visits by foreign government officials, including those from Saudi Arabia, to the Treasury Department.
The controversies put a crimp in the hotel’s profits, people with knowledge of its finances have said, which worsened as the pandemic dragged on, limiting travel and gatherings. Even as the hospitality industry has recovered, Trump’s departure from Washington sucked some of the energy out of the property.