Washington Trump Hotel Business Rights Resale 추진

Photo by Bloom

[Asia Economy Reporter Yujin Cho] Bloomberg reported on the 2nd (local time) that the sale process of the leasehold rights for the Trump International Hotel in Washington DC, USA, has resumed.

The report, citing anonymous sources, stated that the Trump Organization, former U.S. President Donald Trump's real estate development company, has selected Newmark as the lead agent for the sale of the hotel's leasehold rights.

Previously, the Trump Organization put the leasehold rights of this hotel on the market in October last year, but the sale process was put on hold as the market shunned it due to the high price.

At that time, the Trump side proposed a desired sale price of $500 million, but the value of the asset plummeted due to the COVID-19 pandemic, and the deal did not materialize. According to CNBC, a source familiar with the sale negotiations said there was even a bidder who offered less than half of the asking price.

This place, once bustling with prominent figures from politics and business during Trump's heyday, was put on the market last year after being hit hard by the COVID-19 pandemic. The hotel, which was declining due to the prolonged pandemic and economic lockdowns, saw its market value plummet further following the U.S. Capitol riot.

This is because former President Trump’s criminal act of inciting rebellion severely damaged the brand image of "Trump."

Another reason the sale is facing difficulties is that the Trump side is not the actual owner of the hotel. The Trump side had previously leased the Old Post Office building from the U.S. General Services Administration for 60 years, spent $200 million on a full renovation of the building, and opened it just before the 2016 presidential election.

According to the U.S. Office of Government Ethics (OGE), the Trump International Hotel's revenue last year was $15 million, down to less than half from $40.5 million the previous year.

This content was produced with the assistance of AI translation services.