Donald Trump is selling his Washington Trump International Hotel for $375million - just one month after the former president was criticized for misleading the public about a 'failing business saddled by debt.'
Miami-based investment firm CGI Merchant Group will acquire the five-star hotel’s lease rights from the Trump Organization and rebrand the federally-owned building after striking a deal with Hilton Worldwide Holdings Inc., The Wall Street Journal reported Sunday.
If the deal is finalized, it represents a 25 percent discount from the $500million the Trump Organization previously sought.
The purported sale comes after the Democrat-run House Committee on Oversight and Reform said in October that the former president concealed the fact his hotel incurred $70 million in net loses.
Trump instead boasted that the hotel netted more than $150 million during his presidency.
But far from being a revenue-generator, it was a 'failing business saddled by debt,' according to a letter the Oversight panel wrote to the General Services Administration (GSA), known as the nation's landlord in October.
Miami-based investment firm CGI Merchant Group is reportedly buying the leasing rights to the Trump International Hotel in Washington, DC
The hotel celebrated its grand opening October 26, 2016, about two weeks before Trump won the presidential election (Pictured: Trump family at the grand opening of the DC hotel)
The letter does not charge that Trump necessarily violated the law; the president is officially exempt from criminal conflict-of-interest laws that apply to other federal employees.
Trump family members have refuted suggestions the hotel had become a money pit.
By converting the building to a Waldorf Astoria – a luxury hotel arm of Hilton – the new leasers could break away from association with Trump, sources said.
‘If it becomes affiliated with a luxury brand, that brand can create a new identity for the property,’ Sean Hennessey, chief executive of hospitality consulting firm Lodging Advisors, told the Journal last month.
Talks of the Trump Organization parting with its family gem have been underway for years and were put on hold last November after potential buyers bulked at the then-$500million price tag.
The Trump Organization, which is owned by the former president and run by his children, hired top real estate firm Jones Lang LaSalle in October 2019 to find potential