Sources tell Axios that Trump's former President is in advanced negotiations to sell the rights to Trump International Hotel in Washington, D.C.
Why it matters: Trump's removal from Pennsylvania Avenue would be symbolic bombshell that opponents will savor.
Axios Markets delivers market news that is worth your time. Register now for a free subscription
This historic building was used as a symbol and prop for both sides of the political wars.
The hotel was the hub of Trump's chaotic presidency. Trump was seen preening at his own table and his supporters and supplicants thronging restaurants and bars to curry favor.
It would work as follows: Trump would lease the rights to a real-estate developer who would then negotiate with hotels companies to manage the property and rebrand the property.
The terms of the deals are not yet known, but Trump's representatives have been in discussions with major hotel chains as well as investors.
Trump initially attempted to sell the federal property leased by Trump in the fall 2019. Axios declined his request for comment.
Sources claim that the ex-president is unlikely to receive the $500 million he was seeking in 2019.
The story behind the hotel: It is located in the 122-year old Old Post Office Building.
The General Services Administration (GSA), federal landlord, announced a 60 year lease agreement with Trump Organization three years before Trump was elected.
The 2013 agreement provided that $200 million of private money would be used to renovate the building and transform it into a luxury community.
GSA reported in 2017 that the Trump Organization had been paying $250,000 per month in base rent. The rent was set to increase with inflation.
NPR reported that many contract and ethics experts called on GSA to end the 60 year lease after Trump's election. In effect, Trump became both tenant and landlord. However, GSA remained firm in its support of the agreement.
Trump's hotels and golf resorts were hard hit by COVID shutdowns. These have wreaked havoc on the hospitality industry, made worse by Trump's loss of heat following his defeat in 2020.
Continue the story
The Washington Post reported on Trump's departure that the D.C. hotel still owed $170 million and that revenue had dropped more than 60% compared to previous years.
The Post reported in June that Trump had engaged Newmark Group, a brokerage firm, to market his lease.
Bloomberg reported that Jones Lang LaSalle Inc. was the original commercial real-estate brokerage firm.
Reporting by Erin Doherty of Axios.
You liked this article? Subscribe to Axios Markets to get more information and receive a free copy of this article.
