While President Trump talks about reopening the economy and putting people back to work, his family’s Trump Doral golf resort has furloughed more than 500 employees, as hotels across South Florida continue to feel the effects of the coronavirus pandemic.
The 194-room Delano South Beach, owned by SBE Entertainment Group, at 1685 Collins Avenue in Miami Beach, also laid off 261 employees, according to a WARN notice filed with the state.
Trump National Doral Miami at 4400 Northwest 87th Avenue laid off 560 employees, according to its WARN notice. The 643-room golf resort said its furloughs are temporary, and involve nonessential personnel. The affected positions largely consist of employees in golf course operations, food and beverage service and hotel service, according to the WARN notice. The golf resort closed temporarily on March 23.
Last month, BLT Prime Doral, a restaurant at Trump National Doral Miami, laid off 98 people and also shut down temporarily.
Trump bought the 650-acre resort in 2012 for a reported $150 million. He borrowed $125 million from Deutsche Bank and embarked on $250 million in renovations.
President Trump has previously touted Trump National Doral in federal disclosures as the Trump Organization’s most profitable resort. A Washington Post report from May said overall revenue at the golf resort was down since 2015 and net operating income declined by 69 percent from 2015 to 2017.
South Florida’s hospitality industry has been hit particularly hard by coronavirus. The 653-room bayfront InterContinental Miami at 100 Chopin Plaza laid off 377 employees, according to a WARN Notice filed with the state. The Hilton Singer Island Oceanfront/Palm Beaches resort at 3700 North Ocean Drive in Riviera Beach also laid off 88 employees. And the 221-room Four Seasons Hotel Miami at 1435 Brickell Avenue furloughed 312 people.
Earlier this month, Florida Gov. Ron DeSantis issued an executive order requiring people to stay at home, except for essential businesses. The order followed previous decisions by individual counties and municipalities to close down non-essential businesses, including in some cases, hotels.
The hotel industry is also facing over $4 billion in debt payments on Commercial Mortgage-Backed Securities (CMBS) loans. The loans are harder to restructure than conventional loans and are more likely to head to foreclosure, according to industry experts.