The Trump Organization is officially exploring the sale of its historic and very profitable Washington D.C. hotel.
The hotel is actually owned by the Federal Government and is leased to the Trump organization.
Trump won a huge bidding war to develop the Old Post Office in 2012 and turn it into a hotel. The Trumps are said to be asking for $500 million for the rights to take over the 100 lease.
This is big news but it seems like Trump is going to come out the winner no matter what he decides to do.
The Trump Organization is exploring a sale of the rights to the company’s opulent Washington, D.C., hotel, a move it says is motivated partly by criticism that the Trumps are flouting ethics laws by profiting from the property.
President Trump’s family business has hired the real-estate firm JLL to market the Trump International Hotel, Eric Trump, an executive vice president at the Trump Organization, told The Wall Street Journal.
A number of groups have over time expressed interest in buying the hotel, Eric Trump said in a statement. “Since we opened our doors, we have received tremendous interest in this hotel and as real-estate developers, we are always willing to explore our options,” he said.
He added that scrutiny of the hotel’s profits was another reason the family is considering a sale: “People are objecting to us making so much money on the hotel, and therefore we may be willing to sell.”
The 121-year-old building is the former Old Post Office and is near the National Mall. It is owned by the federal government and is leased to the Trump Organization by the General Services Administration.
The company is hoping to fetch more than $500 million for the lease rights, or a price of about $2 million a room key, say people familiar with the matter. That would make the sale one of the highest-priced hotel deals ever by this popular industry valuation metric. With extensions, the lease runs close to 100 years, and a new owner could control the property well into the next century.