(Bloomberg) – Donald Trump’s family-run business has reached an agreement to sell the rights to its Washington, DC hotel for $ 375 million. Thereafter, according to people familiar with the matter, the property will be branded as the Waldorf Astoria.
A Miami-based investment firm, the CGI Merchant Group, is on the contract to acquire the hotel lease for the Trump International Hotel, which is less than a mile from the White House on Pennsylvania Avenue, said people who refused, identified be because the matter is private. The transaction should be completed in the first quarter, it said.
The buyer plans to remove the Trump name and has reached an agreement with Hilton Worldwide Holdings Inc. to convert the property into a Hilton-managed Waldorf Astoria. The Wall Street Journal reported on the agreement on Sunday.
Trump acquired the rights to develop the hotel in Washington’s Old Post Office building on Pennsylvania Avenue in 2012 and rented the building from the federal government. The hotel was a valuable asset to the Trump organization, and Trump turned down requests to sell the hotel when he was elected president.
Trump’s company has been steadfastly trying to sell the hotel since 2019 when it posted an asking price of more than $ 500 million, Bloomberg News previously reported.
The hotel has been a source of constant controversy, with critics arguing that foreign governments and other stakeholders could win favor by booking rooms in a hotel owned by the former president’s company.
According to documents released by the House Committee on Oversight and Reform, the hotel received approximately $ 3.75 million in payments from overseas governments but still lost more than $ 70 million during Trump’s tenure at the White House. The Trump organization denied the report.
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