Former President Donald Trump will be selling his marquee Washington hotel for $375 million. The sale of the Trump International Hotel, which has been the subject of controversy during Trump's presidency, comes after years of continued losses even as the establishment drew crowds of supporters and political allies.
Trump's family business has reportedly reached a purchase and sale agreement with CGI Merchant Group. The deal does not constitute a final sale of the hotel, but the deal is expected to finalize within the next year. The sale is expected to turn a profit for Trump's overall investment in the property.
The sale will not be for the property itself but for the lease of the hotel, which is operating within a federal building on Pennsylvania Avenue. Since it opened in 2016, before Trump was elected the President of the United States, the hotel has not been profitable.
When he became president, the asset became the center of ethical scrutiny, given that it was just five blocks away from the White House. The hotel had drawn crowds of Trump supporters and lobbyists when Trump became president. The continued operation of the hotel blurred the lines between Trump's presidency and his business empire, which fueled criticism from Democrats and his political rivals.
Trump was eventually sued over his ownership of the hotel, with critics arguing that the hotel was receiving business from foreign governments and other political figures due to his presidency. The lawsuits claimed that Trump had violated the so-called emoluments clause of the U.S. Constitution.
Trump's company stated that it does not deliberately pursue business from foreign governments. Trump also gave to the Treasury Department revenues from foreign government leaders' trips, notably those from Saudi Arabia.
People familiar with the matter said the disputes hurt profitability, which exacerbated as the coronavirus outbreak carried on, limiting travel and meetings. Even as the hotel sector has rebounded, Trump's exit from the White House sapped some of the property's enthusiasm.
According to audits provided to House investigators, the hotel still lost around $5 million to $10 million per year before depreciation losses were taken into account, resulting in a total loss of about $74 million from 2016 to 2020.
Trump attempted to sell the property in 2019 but was unable to reach an agreement before the outbreak.
Sources with knowledge in the matter said CGI Merchant Group is planning to rename the hotel under the Waldorf Astoria luxury brand.
