The Trump SoHo hotel, the New York property that’s the center of a scandal where Ivanka Trump avoided prosecution for false marketing claims, will lose the Trump name at the end of the month with the Trump Organization walking away from the project.
Under the exit deal, the Trump Organization will sever its contract with the building’s owner, an investment firm in California that focuses primarily on real estate. As with many of their properties, the Trumps do not own the SoHo hotel, but instead manage the day-to-day operations. The Trump Organization is entitled to a cut of the hotel’s revenue, although the contract also requires the Trumps to pay the owner, CIM Group, if the property fails to meet certain financial performance standards.
This comes months after the Trump name was taken down from its Toronto property, and the group has made moves into midscale lodging instead.
Apparently Trump is being paid to walk away from the Trump SoHo. Trump’s Washington DC hotel is faring better, reportedly earning $2 million in the first quarter of 2017, while plans for expansion stalled in Dallas when it was revealed a financing partner was linked to Russia and Kazakhstan.
(HT: Jonathan W.)