Long before he was POTUS, Donald Trump had established himself as both a successful entrepreneur and television personality. If you remember The Apprentice, then you know that he was the show’s producer and host all in one.
Before he’d ventured into TV though, Trump had taken charge of his family’s business some decades back, eponymously naming it The Trump Organization and leading it to enviable heights of success. By licensing his name, the entrepreneur was able to diversify from real estate and into other lucrative side ventures, creating an empire while at it.
Best Laid Plans
The Organization seems to have its hand in anything and everything, and one of the prime pieces of real estate it owns is the Washington-based Trump Hotel. However, the President’s empire may soon have this establishment off their hands, if things go according to plan.
Eric Trump, son to POTUS and the Organization’s Vice President revealed that they are looking to sell rights to the Washington hotel. Via a statement sent to The Wall Street Journal, the VP admitted that ever since the establishment became operational, numerous parties had expressed their interest in buying it, and being real-estate developers, it was only right that they explored their options.
The Trump Hotel is located in one of the most iconic buildings in D.C. (Old Post Office), to which the Organization holds a 60-year lease as of 2013. To sell these rights, they are asking for a whopping $500 million, a sum that players in the industry have described as being extraordinarily large.
According to The Wall Street Journal, finding a buyer willing to pay this vast sum would make the sale a historic one, becoming one of the biggest deals ever in the hotel industry.
And in classic Trump fashion, you’d be surprised at the reason why they want to sell the hotel. Apparently, they’re making too much money from it that they’re making people uncomfortable, so they’d rather sell the whole thing than live with the mumblings of other players in the market who think that they have an unfair competitive advantage. Of all the problems to have, would this one faze you if you found yourself in such a situation?
All the same, you can’t argue that the Trumps owning the Old Post Office building hasn’t been good for the property, and the government as well. For starters, the Organization coughed up $200 million to renovate the structure, and we all know the miracles that such an amount can perform.
As for the federal government, The Trump Organization pays sums of about $3 million per year as rent money. However, political critics, as well as legal experts, have argued that the President’s business interests, and particularly this Washington-based hotel, present ethical and constitutional concerns.
Having been perfected to international standards, the Trump Hotel attracts dignitaries from all over the world. Foreign leaders and other officials have paid homage to the hotel whenever they’re in the city, and most definitely pay for the services they receive. Part of this cash lines the President’s pockets, although the Constitution prohibits him from receiving emoluments from foreign dignitaries.
Not even the sale of said rights would quash these concerns, as POTUS stands to profit handsomely from this deal.