Damian Eales Chief Executive Officer | realtors.com
Donald Trump's real estate company is exploring the possibility of reacquiring its former hotel in Washington, D.C. Eric Trump recently met with an executive from BDT & MSD Partners at Mar-a-Lago to discuss purchasing the lease for the property, which now operates as a Waldorf Astoria.
The Trump International Hotel, located in the Old Post Office building and leased from the federal government, was initially opened by Trump in 2016 but sold in 2022 for $375 million. The family firm is considering this move as Donald Trump prepares to return to the White House. Reacquiring the hotel rights could exceed $300 million.
Hilton holds a long-term management agreement for the Waldorf Astoria brand at this location. However, should a new leaseholder emerge, there might be room for negotiation to resume operation under the Trump name.
During Trump's first term, allegations arose regarding potential violations of the Foreign Emoluments Clause due to foreign officials spending money at his properties. Despite these claims and subsequent lawsuits filed by Maryland and D.C., the Supreme Court dismissed them in 2021 after President Biden's inauguration.
Should the Trump Organization regain control of the hotel, similar legal and conflict-of-interest concerns are anticipated. The organization has not yet clarified how it would address these issues.
Eric Trump commented on potential plans shortly before last year's election: "It's too early to tell."
While many business ventures were paused during Trump's presidency, recent years have seen renewed global expansion efforts by his company. These include projects in Scotland, India, Indonesia, and Oman.
The Trumps have a notable history with their former D.C. property. In 2012 they secured a long-term lease after competing against major investors like Marriott International and Hilton. During Trump's presidency, it became a hub for Republicans and those connected with his administration.
In 2019, real-estate firm JLL was hired by the Trumps to explore selling rights to alleviate criticism over perceived ethics law violations related to profiting from this property. Eric Trump remarked then that financial success was part of their willingness to sell: "People are objecting to us making so much money on the hotel."
The lease was purchased by CGI Merchant Group for $375 million; however financial difficulties led BDT & MSD Partners taking control through foreclosure following debt default issues faced by CGI Merchant Group since acquiring it.
Currently operated under merchant bank management boasting high revenue per available room rates among city hotels along Pennsylvania Avenue near White House proximity featuring spacious guest rooms suites priced starting around $1k+ per night according recent Hilton website searches conducted recently
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