The Trump Organization is in advanced discussions with a Miami-based investment firm to sell the rights to its Washington, D.C., hotel, a once prominent property that has since devolved into an ethical and financial headache for the ex-president, The Wall Street Journal reported Tuesday.
The Journal, in an anonymously sourced report, claimed Trump’s family company is nearing a deal to sell its lease on the Trump International Hotel, located in the Old Post Office near the White House, to Florida’s CGI Merchant Group.
The report suggested the deal could fetch anywhere between $370 million and $400 million, roughly $100 million less than what the family initially hoped it would get when it started shopping the sales market two years ago—but still very high for a property that has been bleeding money.
CGI Merchant Group, a firm focused on “socially conscious investing,” is also reportedly looking into removing the Trump name from the opulent hotel and has already entered discussions with other hotel operators like Hilton Worldwide Holdings.
Axios also reported last month that the Trump family business was nearing a deal on the hotel, but did not name the potential buyer (it’s unclear whether it was CGI Merchant Group).
The Trump Organization and CGI Merchant Group did not immediately respond to a request for comment from Forbes.
The property is owned by the federal government and was leased to the Trump Organization in 2012 when the company pledged to spend a whopping $200 million renovating and converting the historic site, more than its competitors Marriott and Hilton. Because the building is federally owned, any deal will need the approval of the General Services Administration (GSA), an independent agency of the government.
$250,000. That’s how much the Trump Organization pays in base rent each month, the GSA said in 2017.
Trump’s D.C. hotel represented a high-profile asset throughout his presidency, serving as a popular meeting spot for Republican lawmakers, foreign leaders and his supporters. However, his refusal to divest from his businesses while in office (unlike most modern presidents) quickly sparked concerns of conflicts of interests. A Democrat-led House committee probing this issue released a trove of papers on Friday detailing what its members described as “troubling” revelations regarding payments from foreign governments and preferential treatment from loaners. The lawmakers claimed Trump received roughly $3.7 million from foreign governments. The hotel was not doing well financially during this time either, the lawmakers said, citing financial documents which showed it lost over $70 million while Trump was in office and had to receive a $24 million injection from the ex-president’s company. The Trumps have disputed the accuracy of the House committee’s findings but did not offer any further information.