The Trump International Hotel in Washington DC has been sold in a $375m deal and will be transformed into a Waldorf Astoria, according to the government agency which approved the sale to a Miami investment fund.
The Trump Organization had poured $200m into the federally-owned historic Old Post Office on Pennsylvania Avenue, though the converted hotel lost millions during the tenure of the 45th president, according to reports.
The General Services Administration on Friday announced that CGI Hospitality Opportunity Fund I, LP and Hilton Worldwide Holdings, Inc. would convert the property into a Waldorf Astoria luxury hotel.
“GSA based this decision on the strength of the partnership between CGI and Hilton and the parties’ commitment to ensuring the success of the future hotel, upon the closing of the transaction, through: (1) executing a long-term property management agreement; (2) providing significant equity; and (3) providing material credit support to assist with securing debt financing,” the GSA announced in a statement.
The Trump Organization is selling the lease, not the building itself.
“The confirmation was based on an extensive and exhaustive due diligence review of the documentation provided in support of the proposed assignment. The documentation included, among other things, financial information and details regarding their respective expertise and experience with financing real estate acquisitions and operating hotels.”
The Associated Press has reported that investors include former New York Yankees slugger Alex Rodriguez, with the $375m price tag far more than many expected for a hotel that lost tens of millions of dollars while Trump was president.
The deal is a significant victory for the ex-president’s company after business partners cut ties following the 6 January Capitol riot by Trump supporters last year.
Eric Trump declined to comment but told AP that the GSA approval “was the last condition to closing the deal.”
The hotel - known as host to power-player hobnobbing - has been at the center of several lawsuits and investigations, including one by the House Oversight Committee.
The CGI-led fund has already purchased two Miami hotels and a third in Atlanta and rebranded them into a chain of “socially conscious” and “eco-friendly” properties, AP reported.
In addition to Mr Rodriguez - who did not comment to AP - former boxing champion Floyd Mayweather Jr is also in the fund and will be part-owner of the hotel, CGI confirmed to the agency.
