The Trump Organization is closing in on a deal to sell former President Donald Trump’s marquee Washington, D.C., hotel for around $400 million, The Wall Street Journal reported Tuesday.
Citing unnamed sources, the Journal reported CGI Merchant Group, a Miami-based investment firm, is in talks to acquire the lease on Trump International Hotel, located in the former Old Post Office and a short walk from the White House.
The property is owned by the federal government, but with extensions the lease runs close to 100 years. CGI has also entered into discussions with hotel operators about dropping the Trump name on the hotel, the Journal reported.
The lease deal could ultimately fetch closer to $400 million — roughly double what the Trump Organization spent to convert the government building into a luxury hotel, according to the Journal.
The lease sale talks come amid the House Committee on Oversight and Reform's examination of the lease terms between the Trump Organization and the federal government’s General Services Administration for use of the Old Post Office, the news outlet noted. The committee is probing how well Trump managed conflicts of interest while in office.
The same committee’s report last week stated the hotel lost more than $70 million between 2016 and 2020, which triggered a Trump Organization infusion of at least $24 million in aid, the Journal reported. The Trumps have disputed the findings.
The hotel generated about $150 million in revenue over four years, according to Trump’s financial disclosures while president, the Journal reported.
His most recent disclosure, which covered all of 2020 and the first few weeks of 2021, showed the hotel’s revenue fell to $15 million, compared with $40 million in 2019, the Journal reported.
CGI founder and chief executive Raoul Thomas has donated to political causes, including more than $72,000 to President Joe Biden’s campaign and the Democratic Party during the 2020 election, fundraising records show. Thomas also recently contributed $25,000 to the campaign committee of Florida Republican Gov. Ron DeSantis, state records show.
© 2021 Newsmax. All rights reserved.