NEW YORK (Washington Insider Magazine) – The lease of Donald Trump’s family corporation’s Washington, D.C. hotel, which served as a symbol of his influence to GOP leaders who convened there but also of corruption to his opponents, has been sold to a Miami-based investor firm.
The Trump Organization announced on Wednesday that it has finalized the sale of a long term leasehold of the Trump International Hotel to CGI Merchant Group of Miami for a record per-room fee in the city. According to sources familiar with the deal who requested anonymity to disclose the private transfer, the price was $375 million, giving the Trump family company a profit of up to $100 million.
According to ABC NEWS, the buyers intended to strip the Trump name off the front and rebrand the property as Waldorf Astoria. On Wednesday night, employees were seen dismantling signage from the hotel.
Former Yankee star Alexander Rodriguez is among the group of investors, according to the Associated Press.
Many hoteliers, consultants, and brokers were surprised by the hefty amount paid for the 263-room hotel across the street from the White House. During Trump’s 4 years in office, the hotel lost over $70 million, counting each year before the pandemic shutdowns.
Democratic lawmakers have questioned the excessive price, which is nearly $1.4 million per room. CGI was asked to provide documents detailing all of its investors by the US House Oversight Committee earlier in the month.
Diplomats, lobbyists, and many others trying to court favor with the president flocked to the hotel. Democrats claimed it tainted the president’s credibility, pitted his financial interests against the public good, and probably breached the law. Several litigation challenging his lease ownership were dismissed.
The hotel is housed in the historic Old Post Office structure, which is still owned by the state. In lieu of paying the state annual rent and a share of the earnings on a sale, the Trump Organization was granted the right to renovate the building and operate it as a hotel.