Plans to sell the Trump International Hotel in Washington were postponed after bids came in for less than half the asking price.
JLL you Trump organization Hired last spring to launch the property, he told CNBC that plans to sell the property were “indefinite”. Trump sought $ 500 million for an asset that, like the company’s other hotels and resorts, benefits from those who have recently sought the support of President Donald Trump’s government four years.
According to the Office of Government Ethics, the property earned $ 40.5 million in 2019. Now, like the rest hotel industry, the asset is struggling – and is backed by a $ 100 million loan German bank provided for renovations.
“At this point, they could either just hand over the keys or keep them and become part of any media company the president decides to set up,” said Brian Friedman of Friedman Capital, which applied for a hotel and owns several properties in the area. “I just don’t think they’ll get the price they expected.”
A spokesman for Trump’s organization said the company had no plans to repay the loan and had received bids in excess of $ 350 million, “which would be the most expensive price the hotel has ever paid” in DC.
Other factors that may have distracted some potential buyers include the requirement to keep Trump’s name on the hotel and a 60-year lease at the former General Services Administration post office.
In 2011, Trump significantly outperformed its competitors in terms of rental, paying $ 3 million a year – a number that is rising with inflation. Experts for CNBC said that as a result, any property offer would have to be around $ 150 million or $ 175 million.
In total, the developer invested $ 200 million in the property. In 2012, Trump told the Washington Post that he had paid “too much for old mail.”
[CNBC] – Georgia Kromrei