According to Wall Street Journal today, former President Donald Trump is close to selling his luxury resort hotel for at least $370 million. CGI Merchant Group, a Miami-based investment company emerges as a potential buyer. Although there could be more bidding from other potential buyers which could make the final deal over $400 million.
The hotel is inside the Old Post Office building, situated at the corner of Pennsylvania Avenue, not far away from the White House. In 2013, the U.S. General Service Administration (GSA) leased the property for 60 years to a holding company that former President Trump owned. Thereafter, Trump developed the property into a luxury hotel which opened in September 2016.
The hotel industry has been hit very hard during the pandemic in 2020, although it rebounded in the first half of 2021, travel has not yet been resumed back to the pre-pandemic level. Trump may have chosen to sell the hotel to avoid financial liabilities as he continued to face hurdles in both political and business agendas following after turbulent events on January 6th early this year.
The House Committee on Oversight and Reform last week found the former president’s hotel lost more than 70 million during his term in office despite taking foreign aid, according to the documents reported in the investigation.
The Trump Organization repudiated the report, in a statement, the company said “This report is nothing more than continued political harassment in a desperate attempt to mislead the American public and defame Trump in pursuit of their own agenda”.