The 45th US President leaves the Trump International Hotel in Washington, DC
The Trump organization has reportedly reached a deal to sell the rights to its renowned hotel to CGI Merchant Group for $ 375 million, according to The Wall Street Journal. As part of the planned deal with the Miami-based investment firm, the Washington mainstay will be renamed Waldorf Astoria and managed by the Hilton Group, sources told the publication.
The Trump organization gained federal government approval to redevelop the historic Old Post Office building in 2012 and opened in September 2016. The 263-key luxury hotel has some of the most expensive rooms. the capital’s spacious rooms and is located just one mile from the White House on Pennsylvania Avenue. While this is a major asset for Trump’s family-owned hotel company, it has been on and off the market since 2019.
The sale comes just a month after the House Committee on Oversight and Reform released a report regarding the hotel’s finances. The former US president claimed the hotel made $ 150 million while he was in power, but the congressional committee said it had lost more than $ 70 million in the four years since its opening.
The report also said Trump “covered up potential conflicts of interest” when renting the hotel. Throughout Trump’s presidency, reports suggested that foreign governments and other interest groups were staying at the Trump Hotel as a means of gaining the president’s favor. Documents showed the hotel received $ 3.7 million in payments from foreign governments. According to the committee, this is enough to cover 7,400 hotel nights on an average daily rate. The Trump Organization has since disputed these findings and called the report “misleading.”
Given its politicized past, the posh hotel seems to be getting a refresh with a luxury brand like Waldorf Astoria. We might not have to wait long either. CGI Merchant Group is expected to close the deal in the first quarter of next year.
Trump Organization and CGI Merchant Group did not immediately respond to Robb Reportrequests for comments on the sale of the hotel.