Deadline is set for bids on Trump’s DC hotel

The Trump Organization is hoping for $500 million for the Pennsylvania Avenue hotel

Jan.January 08, 2020 06:00 PM
Donald Trump and the Trump Hotel in Washington D.C. (Credit: Getty Images)

Donald Trump and the Trump Hotel in Washington D.C. (Credit: Getty Images)

Potential buyers have until January 23 to bid on the Trump Organization’s controversial Washington, D.C. hotel.

The firm marketing the Trump Washington hotel, JLL, is already seeing “robust activity,” the Wall Street Journal reported, and the Trump Organization hopes it can fetch $500 million for the ground lease. That price would represent $2 million per key, which would constitute a record in the nation’s capital.

Trump does not actually own the hotel, but leases the former Post Office from the federal government. In October, Eric Trump said that scrutiny of the hotel’s profits led the family to consider its sale.

In November, the Washington Post reported that the hotel experienced a 57 percent occupancy rate — compared to 75 percent among other high-end hotels.

A 2019 investigation by The Real Deal found that the Trump Hotel in Chicago has struggled to find retail tenants, with a large portion languishing on the market for a decade.

Sources familiar with the matter told the Journal that foreign private-equity firms and wealthy families are expected to bid, as well as major hotel brands like Hilton Worldwide Holdings and Marriott International.

The Trump Organization’s contract with the federal government – administered by the General Services Administration, the agency that oversees the federal government’s real estate holdings – is the subject of an ongoing investigation from the House Committee on Transportation and Infrastructure. The hotel lease prohibits any elected member of the federal government from profiting from the hotel arrangement.

[WSJ] — Georgia Kromrei

Related Articles

South Beach Miami (Credit: iStock)

Miami hotels prepare for layoffs and other budget cuts as occupancy plummets

Techrin Hijazi with Brown Harris Stevens Miami, and Ivan Ramirez with Royal Palm Residences sales team

Movers & Shakers: Techrin Hijazi joins BHS Miami, Royal Palm project names sales team & more

Steven Hurwitz and Ryan Severino

JLL’s top economist forecasts low probability of a recession

Donald Trump, Vanilla Ice and Briny Breezes (Credit: Getty Images)

Trump Town? Briny Breezes wants to sell for $1B

Daily Digest Miami

Missoni Baia lands massive loan, Babylon Brickell owner sells Overtown property: Daily digest

Donald and Melania Trump at the entrance way of Mar-a-Lago (Credit: Getty Images)

With move to Mar-a-Lago, Trump could use Florida real estate law to protect himself from creditors

Cavalier and Henrosa hotels with Susan Gale of One Sotheby’s International Realty

Two South Beach hotels hit the market for $42M

A rendering of Arlo Wynwood

Quadrum Global plans Arlo hotel in Wynwood