After losses in the millions: Trump gives up bankrupt hotel in Washington

After losses in the millions
Trump gives up broke hotel in Washington

After Donald Trump’s election victory, his hotel in Washington became a popular meeting place for his supporters. But in recent years the luxury hostel has slipped deep into the red. Now the Trump group is giving up the business for a million euros.

Former US President Donald Trump’s Trump Organization is transferring the lease for a luxury hotel in Washington to another hotel group. The lease will be transferred to the CGI Merchant Group for $ 375 million, according to several US media. Accordingly, CGI has signed another contract with the Hilton Group, which intends to operate the Trump International Hotel under this name through its subsidiary Waldorf Astoria.

The building, which was built as the headquarters of the US Post Office in the capital at the end of the 19th century, is in close proximity to the White House and belongs to the state. In 2013 he leased it to the Trump Organization for at least 60 years. The company is said to have invested around $ 200 million in the renovation.

According to an investigation report by the US House of Representatives, Trump Old Post Office LLC, which was founded to operate the hotel, lost more than $ 71 million between the hotel’s opening in 2016 and the end of August 2020. In spring 2020, the group tried to get a rent discount from the government as a result of the Corona crisis.

After Trump’s election victory in 2016, the hotel with a good 250 rooms became an important meeting place for Republican politicians and lobbyists. The fact that foreign state guests were repeatedly accommodated there during their visit to Washington had caused criticism. A committee of inquiry has not yet finalized its report on whether Trump, as president and shareholder of the Trump Organization, was subject to a conflict of interest.

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