Business

Investment group buys Trump hotel in Washington

Former President Donald Trump’s hotel company reached an agreement with an investment group to sell the rights to his hotel in Washington for $ 375 million.

The operation must be approved by an entity of the US federal government, which owns the property.

According to the Wall Street Journal and CNN, which cited people familiar with the matter, the Miami-based CGI Merchant Group has a contract to acquire the lease of the Trump International Hotel, located near the White House.

Sources indicated that CGI Merchant Group intends to rename the property.

In addition, CGI has reached an agreement with the American multinational hotel company Hilton Worldwide Holdings Inc. so that the place is under the brand and is managed by the Hilton Waldorf Astoria group.

The transaction is subject to the approval of the General Administration of Services, since the property, which was the former Post Office, is owned by the federal government.

According to the Journal, the lease with the federal government, with extensions, lasts for 100 years.

The House Oversight and Reform Committee, which has examined the terms of the lease between the Trump Organization and the GSA, recently revealed that the hotel in Washington lost $ 70 million between 2016 and 2020, both reports noted. .

The WSJ noted that the hotel’s revenue during those four years was $ 150 million.

Reports for all of 2020 and the first weeks of 2021 indicated that property revenues fell to $ 15 million from $ 40 million in 2019, due to the impact of the pandemic, the newspaper added.

John Michael

“John Michael" is a Online Editor specialist with a decade of successful experience in News Publication PR management. John specializes in news and regularly attends national training sessions to showcase new Publication trends, such as self-service, wellness , health, and Politics and Entertainment.

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