Trump's Washington DC hotel sold for record price to Florida-based group
- The deal was valued at roughly $375 million
- The value of one room was estimated to be $1.4 million
- COVID-19 caused a flurry of financial troubles to the hotel
Former United States President Donald Trump sold his Washington DC hotel to a Florida-based group. People close to the deal said it was valued at roughly $375 million.
The hotel was often used by Republican lawmakers and foreign officials who were visiting the national capital. However, this changed after Trump vacated the White House in early 2021.
Media reports citing real estate experts, brokers and consultants suggest that the price received for the 263-room hotel is too high when compared to current market trends. The current deal would value one room at around $1.4 million.
The Washington DC property also recently faced financial troubles. More than $70 million were lost during the four-year presidential term of Donald Trump, Associated Press reported. The COVID-19 pandemic also severely dented the finances of Trump's hotel.
The long-term lease deal of the Trump International Hotel was given to CGI Merchant Group of Miami, the Trump Organization said in a statement. The company said it got the record price per room for the city.
The hotel will now reportedly be rebranded as "Waldorf Astoria" by the new owners, who plan to remove Trump's name from the facade. The board was removed from the hotel's entry on Wednesday night, Associated Press reported.
The hotel was a magnet for lobbyists, diplomats and others seeking to curry favor with the president. Democrats said it sullied the reputation of the presidency, pitted his financial interest against public interest and possibly broke the law. Several lawsuits challenging his ownership of the lease were unsuccessful.
The hotel is the former Old Post Office building, and it is still formally owned by the federal government. The Trump Organization won rights to fix up the building and run it as a hotel in exchange for paying the government annual rent and a cut of profit upon a sale.