WASHINGTON (BLOOMBERG) - Mr Donald Trump's family-run company has reached a deal to sell the rights to its Washington DC hotel for US$375 million (S$507 million), after which the property will be branded as Waldorf Astoria, according to people familiar with the matter.
A Miami-based investment firm, CGI Merchant Group, is in contract to acquire the hotel lease for the Trump International Hotel, situated less than 1.6km away from the White House in Pennsylvania Avenue, the people said, who declined to be identified because the matter is private. The transaction is expected to be completed in the first quarter of next year, they said.
The buyer plans to remove the Trump name and has reached a deal with Hilton Worldwide Holdings to convert the property to a Waldorf Astoria managed by Hilton. The Wall Street Journal reported the agreement earlier on Sunday (Nov 14).
Mr Trump won the rights to develop the hotel, located in Washington's Old Post Office building in Pennsylvania Avenue, in 2012, leasing the building from the federal government.
The hotel has been a prized asset for the Trump Organisation, and Mr Trump rejected calls to sell the hotel when he was elected president.
Mr Trump's company has been engaged in off-and-on efforts to sell the hotel since 2019, when it floated an asking price of more than US$500 million, Bloomberg News previously reported.
The hotel had been a source of consistent controversy, with critics arguing foreign governments and other interest groups could gain favour by booking rooms at a property owned by the former president's company.
According to documents released by the House Committee on Oversight and Reform, the hotel received about US$3.75 million in payments from foreign governments, but still lost more than US$70 million during Mr Trump's time in the White House. The Trump Organisation disputed the report.