Trump DC Hotel Sale Put on Hold
By Keith Loria April 1, 2020 1:38 pm
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The Trump Organization’s attempt to sell the leasing rights to the 263-key Trump International Hotel in Washington, D.C., is currently on pause due to the economic slowdown created by the coronavirus pandemic, according to the Washington Post.
In October, Commercial Observer reported that the Trump Organization was selling the rights to the historic hotel, with several outlets revealing the price would be around $500 million.
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.
JLL (JLL)’s Jeffrey Davis was marketing the hotel and initial bids were due on Jan. 23.
Although no official bids were released, those rumored to be interested in the hotel include Washington Mystics owner Sheila Johnson, developer Brian Friedman, as well as major hotel brands like Hilton Worldwide Holdings and Marriott International.
Currently, the hotel is open but operating at less than capacity, due in part to the coronavirus crisis.
Though the $2.2 trillion stimulus bill included a section for aid to the hospitality industry, lawmakers made sure to include a provision that would keep elected officials and members of the administration from benefiting from the package. Therefore, the hotel cannot collect any help.
During one of his briefings last week, Trump told reporters that his family businesses are feeling the same pain that most are.
“I wouldn’t say you’re thriving when you decide to close down your hotels and your businesses,” he said. “I’m very unleveraged in everything, so that’s good. But is it hurting me? Yeah, it’s hurting me, and it’s hurting Hilton, and it’s hurting all of the great hotel chains all over the world.”
The Trump hotel includes 34 suites plus a separate “Trump Townhouse,” a 6,300-square-foot, townhouse-style suite with its own entrance. The main lobby restaurant, BLT Prime, is operated by chef David Burke.
