Trump Organization Seeks Rent Relief on DC Hotel
The Trump Organization is looking for rent relief for its 263-key Trump International Hotel in Washington, D.C.
Earlier this month, Commercial Observer reported that the Trump Organization paused its efforts to sell the leasing rights to the 263-key Trump International Hotel in Washington, D.C., and now the company is looking to get a break on its rent.
According to the New York Times, the president’s family business has asked about changing the terms of its lease payments, which are currently approximately $268,000 per month.
The Trump Organization signed a 60-year lease in 2013 at the site, a former headquarters space for the U.S. Post Office, and pays the federal government about $3 million a year in rent, according to public records.
Situated a few blocks from the White House, the hotel is the second-tallest structure in the city trailing just the Washington Monument. The hotel officially opened for business in late 2016, and the Wall Street Journal reported it became one of the biggest revenue producers for the Trump family, raking in $40.8 million alone last year.
But with the coronavirus pandemic wreaking havoc on the hotel industry, like most hotels, the money is just not coming in.
The Times reported that the Trump Organization is current on its rent, according to Eric Trump, the president’s son, but he confirmed that the company had opened a conversation about possible delays in future monthly payments.
Ironically, it’s Trump’s own administration that will decide on whether or not to change the terms, but the Trump Organization is hoping for the same relief that the government might be granting other federal tenants.
“Just treat us the same,” Eric Trump said in a statement. “Whatever that may be is fine.”
Last month, Congress barred the Trump Organization from seeking any relief from the $500 billion rescue fund being administered by the Treasury Department.
The D.C. hotel is just one of the Trump Organization’s hospitality interests in trouble. It’s also halted operations at the Trump International Hotel Las Vegas overlooking the Strip and cut staff and services at the Trump International Hotel & Tower in New York.