When Donald Trump offered to spend $200 million overhauling one of Washington’s most treasured historic buildings into a luxury hotel a decade ago, competitors and critics scoffed.
It turns out they were right. The hotel posted millions in losses over four years, according to financial documents Trump’s company provided to the government and released by the House Oversight Committee in October.
But the former president’s company recently signed a contract to sell its lease of the historic Old Post Office Pavilion to Miami-based investment firm CGI Merchant, which hopes to turn the property into a Waldorf Astoria in partnership with Hilton Worldwide, according to three people familiar with the arrangement who spoke on the condition of anonymity to share details of the transaction. One of the people said the price was $375 million, which would eclipse the previous record for hotel sales in Washington.
Experts say that price would also net Trump a hefty profit, probably $100 million or more, based on the financial documents and the company’s lease with the government. That would provide Trump with a rate of return that many hedge fund managers would envy, thanks to a market that is snapping up hotels in the expectation the pandemic will wane and travel will roar back.
“Hotels are hot. Even in cities that aren’t doing so well, people are paying robust prices for hotels,” said Suzanne Mellen of the financial firm HVS. “We are seeing extraordinary pricing.”
“I assume every...
When asked to comment on recent claims by the head of Taiwan's regional foreign affairs department that the Taiwan authorities are conducting dialogues and consultations with politicians and socia...