Miami investment fund can buy Trump Hotel DC
The Trump DC luxury hotel near the White House, which attracted diplomats, lobbyists and much controversy while he was president, received government approval Friday to hand over the keys to a Miami investment fund, a final hurdle to a sale. that many industry insiders doubted it would ever get through.
The federal government agency that oversees the building said a "long and thorough" review found no problem with the Trump Organization's plans to sell to a fund led by CGI Merchant Group. The Associated Press has reported that investors include former New York Yankees slugger Alex Rodriguez. The $375 million price tag is far more than many expected for a hotel that lost tens of millions of dollars while Trump was president.
The deal is a significant victory for the former president's company after the business partners cut ties following the Jan. 6 riots on Capitol Hill by Trump supporters last year. The sprawling real estate company, which owns golf courses, clubs and office towers, was also reeling from the impact of the pandemic shutdowns.
Trump DC hotel gets OK to sell to Miami investment fund https://t.co/Ho4uN0dV9O pic.twitter.com/JJbaHkn6xr
— WPLG Local 10 News (@WPGLLocal10) March 26, 2022
The $375 million would more than offset the $200 million Trump's company invested in renovating the historic federally owned Post Office into a hotel, as well as the $70 million a congressional oversight committee says the hotel he lost during Trump's four years in office. .
One of Trump's sons who oversees the business, Eric Trump, declined to comment other than to confirm that the green light from the feds was the final condition for closing the deal.
A spokesman for Rodriguez did not immediately respond to requests for comment.
Government ethicists have long criticized Trump for opening the hotel to lobbyists, diplomats and others who might have wanted to influence politics. The hotel has been at the center of several lawsuits and investigations, including one by the House Oversight Committee.
"The sale of the Trump Hotel does not resolve the committee's serious concerns about former President Trump's conflicts of interest," said Rep. Carolyn Maloney, D-N.Y., chair of the committee. "No one is above the law."
We are so proud of our Trump Hotels who received Gold Badges as part of US News & World Report's 2022 #BestHotels rankings!
Congratulations to:@TrumpDC@TrumpChicago@TrumpLasVegas@TrumpNewYork@TrumpWaikiki@TrumpDoral@TrumpTurnberry pic.twitter.com/VyInF65xHc
— Trump Hotels (@TrumpHotels) February 18, 2022
The Trump family is not selling the building itself, but rather a long-term lease it signed with the federal government in exchange for fixing it up and paying rent. That deal was overseen by the General Services Administration, the federal agency that completed the review of the sale.
When the new deal finalizes in the coming weeks, the new owners plan to remove the Trump name from the facade and convert the 263-room Trump DC hotel into a Waldorf Astoria under a separate agreement with Hilton, the owner of that luxury brand. .
Author: Patricia Chung 9:13 pm