Despite Trump selling His Hotel in Washington, DC, for $375 million in 2022, He ended-up Losing millions-of-dollars on the Property.
In 2012, the Trump Organization Won a Bid to Restore an old D.C. Post Office and turn it into a Luxury Hotel, but the Federal Government still owned the Land it was built-on. When He made the Deal, He was a Private Citizen. When He became the President, He was No longer allowed to be the Owner under Federal Law, and never released it back to the Government.
The Bid meant Trump was also Committing to Pay Loans of over $250,000 a Month to the General Service Agency (GSA) for the next 60 years.
After a $200 million Renovation, the 263-room Hotel opened in 2016, and quickly became a Social Hub for Republican Politicians, Diplomats, and Foreign Governments. By 2020, at least 75% of the Officials in Trump’s Administration had been seen at the Hotel, Forbes reported.
Despite its Popularity among the Party Faithful and Foreign Governments seeking to curry Favor with Trump, Trump International Hotel brought in well below its expected Revenue and was particularly Hard Hit during the Pandemic.
After Unsuccessfully trying to Sell the Hotel for over $500 million, Trump finally Sold the Hotel to CGI Merchant Group, a Miami-based Company, for $375 million in 2022. The Company also assumed the Lease from the GSA and took a $28 million Loan from Trump Himself, as well as a $285 Loan from the Merchant Bank BDT & MSD Partners, to Finance its New Investment. Trump pocketed $127 million from the Sale.
Though the Hotel's Name and Clientele Changed under New Ownership, it was Renamed the Waldorf Astoria and has since hosted Prominent Democratic groups, its Profitability or Lack thereof did Not. Last summer, CGI Merchant Group Missed a Loan Payment for the First time, Leading to BDT & MSD initiating Foreclosure Proceedings.
Trump consequently Lost All of the $28 million He Loaned to CGI Merchant Group. BDT&MST eventually bought the Hotel for $100 million. The Group was the Sole Bidder for the Property.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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