Trump International Hotel Washington DC sale put on indefinite hold

The Trump International Hotel in DC celebrated its grand opening in October, 2016, right before the election, and quickly became the favorite gathering spot for companies, politicians and lobbyists eager to build relations with the new White House. The property took in $40.5 million in revenue in 2019, the latest period available, according to disclosures filed to the Office of Government Ethics.

According to election filings, campaign committees tied to the president or the GOP spent about $3 million at the hotel since Trump became president. With business strong, the Trump Organization started shopping around the hotel to potential buyers last October.

After the widespread lockdowns and travel restrictions in March, the sales efforts were halted. Even longtime longtime pillars of the Washington hotel business, like the St. Regis and The Hay-Adams, continue to struggle to fill rooms and amid the drop in travel and tourism.

But even when the economy recovers, hotel investors and owners say the Trump hotel is burdened by two conditions that make any sale unlikely. The Trump Organization doesn’t own the property, known as the Old Post Office Pavilion, but leases it from the General Services Administration.

Under the lease terms, The Trump Organization is required to pay $3 million a year over 60 years, with the annual rent escalating with inflation. The company also invested $200 million to renovate the property, with about $100 million of that loaned by Deutsche Bank, according to filings.

Article source: https://www.cnbc.com/2020/11/19/trump-international-hotel-washington-dc-sale-put-on-indefinite-hold.html