Trump Org puts DC hotel sale on “indefinite hold”

Bids for property reportedly came in at half of ask

National /
Nov.November 20, 2020 05:54 AM
Eric and Donald Trump Jr. with 1100 Pennsylvania Avenue (Photos via Getty; Trump Hotels)
Eric and Donald Trump Jr. with 1100 Pennsylvania Avenue (Photos via Getty; Trump Hotels)

Plans to sell the Trump International Hotel in Washington D.C. have been shelved after bids came in at less than half the asking price.

JLL, which the Trump Organization hired last spring to market the property, told CNBC that plans to sell the property were on “indefinite hold.” The Trump Organization sought $500 million for the asset, which like other of the company’s hotels and resorts benefited from those seeking favors from President Donald Trump’s administration over the last four years.

The property made $40.5 million in revenue in 2019, according to the Office of Government Ethics. Now, like the rest of the hotel industry, the asset is struggling — and is saddled with a $100 million loan that Deutsche Bank provided for renovations.

“At this point, they could either just turn over the keys, or keep it and make it part of whatever media company the President decides to create,” said Brian Friedman of Friedman Capital, which bid on the hotel and owns several properties in the area. “I just don’t think they’re going to get the price they expected.”

A spokesperson for the Trump Organization said the company had no plans to default on the loan, and that it had received bids over $350 million, “which would have been the most expensive price ever paid for a hotel” in D.C.

Other factors that may have turned some would-be buyers away include the requirement to maintain the Trump name on the hotel, and the 60-year leasehold on the former post office site with the General Services Administration.

The Trump Organization far outbid competitors for the leasehold in 2011, paying $3 million a year — a figure which rises with inflation. Experts told CNBC that as a result, any bid for the property would have to be around $150 million or $175 million.

Overall, the developer invested $200 million in the property. In 2012, Trump told the Washington Post he had paid “too much for the Old Post Office.”

[CNBC] — Georgia Kromrei


Related Articles

arrow_forward_ios
G6 Hospitality CEO Rob Palleschi and Motel 6 San Jose South, one of the largest assets in the portfolio (G6)
Blackstone’s Motel 6 portfolio gets $685M CMBS loan
Blackstone’s Motel 6 portfolio gets $685M CMBS loan
Renderings for the initial proposal (Los Angeles City Planning)
Domyan Group downsizes plans for DTLA hotel
Domyan Group downsizes plans for DTLA hotel
Hotel sales in California “completely rebound” from 2020 levels
Hotel sales in California “completely rebound” from 2020 levels
Hotel sales in California “completely rebound” from 2020 levels
Plans for the Woodland Hills project with Urban Stearns co-founder Shy Cohen (Togawa Smith Martin, Urban Stearns)
Urban Stearns plans apartment, hotel project in Woodland Hills
Urban Stearns plans apartment, hotel project in Woodland Hills
Relevant Group co-founders Grant King and Richard Heyman (Facebook via Related)
Relevant Group co-founder Richard Heyman exits firm
Relevant Group co-founder Richard Heyman exits firm
Hyatt Regency LAX and Southwest Regional Council of Carpenters CEO Dan Langford (Hyatt)
LAX Hyatt Regency changes hands for $75M
LAX Hyatt Regency changes hands for $75M
Rendering of the Project (City of Pasadena Design Commission / WATG)
Medical office plans swapped for hotel proposal in Pasadena
Medical office plans swapped for hotel proposal in Pasadena
Rendering of the project (NMDA for CIM Group)
CIM drops residential units at proposed West Hollywood hotel
CIM drops residential units at proposed West Hollywood hotel
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...