Donald Trump Seals $375 Million Deal for Washington D.C. Hotel to Firm That Plans to Change Its Name and Be Managed by Hilton Group
An exterior view of the entrance to the new Trump International Hotel at the old post office on October 26, 2016 in Washington, D.C. Republican presidential nominee Donald Trump will attend the hotel's grand opening. Gabriella Demczuk/Getty Images

Former President Donald Trump has agreed to sell his Washington D.C. hotel to an outside firm and turn it over to the Hilton group for management.

Citing people familiar with the matter, The Wall Street Journal reported Sunday that the hotel is selling to the Miami-based investment firm CGI Merchant Group for $375 million. The group is also looking to remove the Trump name from the building, the Independent reported.

CGI reportedly intends to have Hilton Worldwide Holdings Inc.'s Waldorf Astoria group manage the property. The Trump Organization won the rights to lease the building, which was a federal property before.

However, the Trump International Hotel reportedly turned into a political and "financial boondoggle" for the former president. It was a hotel that turned into a gathering spot for Republican politicians, lobbyists, and other executives in the hope of being close to Donald Trump.

The Washington D.C. hotel had garnered criticisms from ethics experts for earning millions from foreign governments sending their personnel to stay there.

Sale of the Washington D.C. Hotel

The House Oversight and Reform Committee is currently looking into possible conflicts of interest and emoluments issues connected to Donald Trump, The Hill reported.

The House Committee is also looking into how the General Services Administration (GSA) managed the lease for the establishment.

Democrats claimed that Trump had hidden a large amount of debt during GSA's initial bidding process for the hotel. They also said that Trump's organization excluded loan balances he owed for his properties in Chicago, Las Vegas, San Francisco, and New York.

Democrats also argued that Deutsche Bank gave Trump special treatment when it allowed him to put off some payments on the $170 million loan for the hotel.

However, the Trump Organization maintained that it did not commit any wrongdoing.

In addition, the organization has defended that it did not advertise its establishment to notable foreign individuals, adding that the company has repaid the government for money it made off of official guests through checks addressed to the Treasury Department.

The Democrat-controlled committee found that the hotel had received more than $3.7 million in payments from foreign governments, which is equivalent to more than 7,400 nights at the hotel, CNBC reported.

The Washington D.C. hotel is in the city's second-tallest structure next to the Washington Monument. It was previously home to the U.S. Post Office Department Headquarters.

Donald Trump's Businesses

Donald Trump's business owes around $1.3 billion, which is around $200 million more than it did when he left office, Forbes reported.

However, Forbes noted that it does not mean that Trump's under more financial pressure. It said the former president's balance sheet is in better shape today as compared to what it was months ago.

It was because JPMorgan Chase helped loan $1.2 billion earlier this year against a San Francisco office complex, wherein Trump has a 30 percent minority interest. Trump reportedly has around $738 million of debt coming due over the next three years.

This article is owned by Latin Post.

Written by: Mary Webber

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