Former President Donald Trump is reported to have signed a deal to sell the iconic Trump International Hotel in Washington, DC for $ 375 million.
CGI Merchant Group, a Miami-based investment firm, has entered into an agreement to acquire a 19th-century building contract. The Wall Street Journal reports, Referring to people who are familiar with the subject.
The Journal added that Trump plans to remove Trump branding from CGI Hotels and has entered into an agreement with Hilton to re-brand the property and is managed by Hilton’s Waldorf Astoria Group.
Sales are expected to close in the first quarter of 2022, the report said.
The 122-year-old building, located just a few blocks from the White House in the former Old Post Office Pavilion, is still owned by the federal government, but with extensions, the lease runs closer to 100 years.
The sale price falls below the $ 500 million payday the Trump agency wanted when it first purchased the lease in 2019.
Trump leased the building from the General Services Administration in 2013 and offered a $ 250 million renovation to turn it into a luxury hotel before it opened to guests in 2016.
It opened its doors just weeks before the presidential election in which Trump was leading the White House.
As president, Trump hosted dozens of dinners at the hotel’s restaurant and received flak from ethical watchdogs for encouraging administration officials to visit the facility.
One group, Citizens for Responsibility and Ethics in Washington, The hotel recorded 973 visits From public officials during Trump’s tenure.
Still, the coronavirus epidemic took a toll on the hotel, as it did in many luxury hotels around the country.
Last month, a report by the Supervisory and Improvement House Committee found the hotel Has lost more than $ 70 million Between 2016 and the beginning of last year, despite the boost in sales to foreign governments.
The report found that Trump had to inject $ 27 million from other parts of his business into the hotel and seek preferential treatment from major lenders to delay payments on the $ 170 million loan to support sick property.
The Trump agency disputed those findings.
“People are opposed to making more money at the hotel, and so we’re ready to sell,” son Eric Trump He told the Wall Street Journal In 2019, when the family first put the lease on the market.