Former President Donald Trump’s family company is reportedly close to selling the rights to the Trump International Hotel in Washington D.C., according to people familiar with the matter.
Miami-based investment firm CGI Merchant Group is in talks to acquire the lease on the hotel, The Wall Street Journal first reported Tuesday. The firm has also entered discussions with hotel operators, including Hilton’s luxury brand Waldorf Astoria, about removing the Trump name.
Former President Donald Trump’s family company is in advanced discussions to sell the rights to its opulent Washington, D.C., hotel in a deal worth more than $370 million, say people familiar with the matter https://t.co/CwDOTDqKCO
— The Wall Street Journal (@WSJ) October 12, 2021
The federal government owns the property, which was formerly the Old Post Office. Trump acquired the lease in 2013 with a reported base rent of $250,000 per month, later spending close to $200 million to turn the property into a luxury hotel.
The lease deal on the hotel could be worth around $400 million, sources familiar with the matter told the WSJ. The price is almost double what the Trump Organization spent on renovating the property after its initial acquisition. Trump’s company considered selling the hotel in 2019 with the expectation that it would sell for around $500 million.
The potential hotel lease sale also comes as Democrats in Congress are ramping up their investigation into potential conflicts of interest and emoluments issues involving the D.C. property and the former president.
The House Committee on Oversight and Reform is investigating the terms of the lease signed between the Trump Organization and the General Services Administration (GSA) for use of the property. The deal took place before Trump ran for office, but Democrats on the committee are probing into conflicts of interest that may have taken place after Trump took office. (RELATED: Trump Vows To ‘Take America Back’ At Iowa Rally, Sparks More Speculation About 2024 Bid)
A committee report published last Friday found the D.C. hotel lost more than $71 million between 2017 and 2020. Democrats argued that Trump misled the federal government by claiming the hotel was profiting despite financial records showing otherwise, according to The Hill.
The documents also showed the Trump Organization received $3.7 million from foreign governments during the former president’s term in office.