(ConservativeInsider.org) – Former President Donald Trump admitted that some of his businesses lost quite a bit of money during his presidency. One such example is the Trump International Hotel in Washington DC, which he spent over $200 million rehabbing before it opened in 2016. While the historic hotel never made money, Trump may have a deal in the bag that could turn a $100 million profit.
The Old Post Office Pavilion Set to Become a Waldorf Astoria
Nearly 10 years ago, Donald Trump won the deal with the General Services Administration to convert the 122-year-old Post Office Pavilion nestled between the Capitol and White House with the promise to rehab it. Those who questioned whether Trump would ever make a profit on the deal were right. It lost around $70 million during the Trump presidency.
However, a new report shows that the Trump Organization entered into a contract to sell its lease of the hotel to CGI Merchant Group, a Miami-based investment firm, for $375 million. CGI will then partner with Hilton Worldwide to open a 5-star Waldorf Astoria location.
Hotel Sales Soar Despite Lack of Travel
While travel is not yet back to pre-pandemic levels, entrepreneurs are hopeful the hospitality industry will spring back eventually. That means investors are paying insanely high prices for hotels, and this sale is no different.
Hotels are typically sold on a “per-key” scale. The Trump International Hotel currently has 263 guest rooms, making the $375 million price even out to around $1.43 million per room. If this sale goes through, it would be the highest in DC to date, beating the 2016 sale of the Capella Hotel Georgetown which went for $1.3 million per key.
Trump Comes Out On Top Again
Despite numerous naysayers when he first bought the prominent DC landmark, it seems the Trump Organization will still turn a profit on the property. Even after the $217 million spent on rehab and supplies, $3 million a year in rent, and the $170 million in loans Trump borrowed, as well as other expenses, experts believe Trump could still walk away with over $100 million in profit.
Despite numerous bankruptcies in the past, this goes to show that President Donald Trump knows what he is doing when it comes to business deals and when to make them. In addition, owning the hotel caused Trump quite a few problems during his administration as its political use raised ethical questions. So, if he chooses to run again for president, not owning the hotel just down the street from the White House will likely save him quite a few headaches as well.
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