Donald Trump’s real estate firm is now reportedly negotiating to reacquire its previous hotel in Washington, D.C., a development that may serve as an initial assessment of how the president-elect would address possible conflicts of interest.
This week, Eric Trump convened at his family’s Mar-a-Lago club in Florida with an executive from the merchant bank BDT & MSD Partners, which holds the long-term lease on the property, as reported by sources familiar with the situation.
Eric Trump, an executive vice president at the company, engaged in discussions on the acquisition of the lease; nevertheless, these negotiations remain preliminary and may not result in a sale, according to sources.
The Trump International Hotel in Washington, D.C., has been rebranded as a Waldorf Astoria and is situated in the Old Post Office building, which is federally owned and was leased to the Trump family.
Trump inaugurated the hotel in 2016, but divested the lease rights in 2022 for $375 million.
The family business is seeking a hotel in the capital as Trump readies for a return to the White House, and the family continues to express interest in its previous property, according to sources familiar with the situation.
According to sources knowledgeable about the property’s operations and earnings, reacquiring the hotel rights may exceed $300 million.
Hilton, the proprietor of the Waldorf Astoria brand, has a long-term management contract with the hotel. The agreement would persist with a new leaseholder.
However, the Trumps may negotiate a new agreement and recommence operation of the property as a Trump hotel.
During his initial administration, Democrats contended that Trump’s financial interest in the property contravened the Foreign Emoluments Clause, a constitutional provision that forbids a president from accepting valuable benefits from foreign or state governments.
Critics asserted that this would pertain to foreign officials who indulged extravagantly in Trump hotel accommodations, dining, and room service.
The Trumps may possess a particular affinity for the Washington, D.C., property. In 2012, their company secured a competitive bidding process for the long-term lease of the land, which, including extensions, approached 100 years.
They surpassed other real estate investors and hotel corporations, including Marriott International and Hilton, to secure the privilege to manage the resort.
The hotel, located a brief stroll from the White House on Pennsylvania Avenue, has emerged as a prized asset in the Trump family portfolio.
During the Trump administration, the White House transformed into a Republican enclave, drawing supporters, lobbyists, legislators, and others with interests before the Trump administration.
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