Trump Org in “advanced talks” to sell DC Hotel lease
Newmark brought in to market property, which drew ethics concerns during Trump’s term, after JLL bailed in January
After several fits and starts, the Trump Organization appears to be close to selling the lease on the Trump International Hotel in Washington, D.C.
In June, the Trump Organization turned to Newmark to market the ground lease on the property. JLL had previously been marketing the hotel, but distanced itself from the Trump Organization after the riot at the Capitol in January.
Now, discussions to sell the lease have entered “advanced talks,” according to Axios.
The developer who buys the leasing rights would negotiate a rebranding and management plan with a hotel company. It’s not clear who the buyer is or what the price would be, but major hotel chains and investors have been involved in talks.
The building was a source of controversy during Donald Trump’s presidency, attracting legal challenges from watchdog groups and Democratic lawmakers over allegations that various foreign and domestic interests sought favor with the administration by booking the hotel.
In 2013, prior to Trump’s first presidential campaign, the General Services Administration announced the Trump Organization’s 60-year lease at the hotel. Under the deal, $200 million of private money was allocated for the building’s restoration and conversion into a luxury development. The GSA upheld the deal during Trump’s presidency, despite ethics concerns.
Newmark was reportedly seeking offers of more than $400 million. The Trump Organization first attempted to sell the lease in October 2019, asking for $500 million. The sales process was put on hold last November after bids came in for less than half the asking price.
The hotel is located in the Old Post Office building, which is 122 years old.
[Axios] — Holden Walter-Warner